Still one of the cheapest on the market, though, but little sign of serious competition in the personal loans market as yet.

The Nationwide Press Release can be found here:

With effect from Wednesday 7 October 2009, Nationwide will be introducing a new personal loan rate of 7.9% APR typical for loans of between £7,500 and £14,999* for its current account customers.

Over the past two months, Nationwide has been offering a special market leading low rate loan rate exclusively for its current account bank account customers. When the special offer period ends on Wednesday 7 October 2009, Nationwide will continue to reward its current account customers by offering a rate of 7.9% APR typical. This continues to be the lowest rate in the UK and beats the rates set by other high street personal loan providers by offering a sub 8% rate. The same low rate applies whether the loan is taken out through a branch, telephone or the Internet.

From the Nationwide press release:

http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1438

With effect from Thursday 6 August 2009, Nationwide will be reducing its personal loans rate to offer a market leading rate of 7.7% typical APR for loans of between £5,000 and £14,999* for its current account customers.

With this typical rate, Nationwide becomes the lender with the lowest personal loan rate in the UK, beating the supermarkets and all the high street banks** – the same low rate applies whether the loan is taken out through branch, telephone or internet.

Chris Rhodes, product and marketing director, said: “Nationwide continues to be competitive in the personal loan market with the introduction of this market leading headline rate of 7.7% typical APR, beating what’s being offered by supermarkets and high street banks.

More coverage:

http://www.earthtimes.org/articles/show/nationwide-building-society-offers-lower-rate-loans,922273.shtml
http://www.entrepreneur.com/PRNewswire/release/190650.html