Sainsbury’s Bank resumes self-employed loan deals
Sainsbury’s Bank at Edinburgh Gyle
Sainsbury’s Bank has relaxed its ban on issuing loans and credit cards to self-employed workers.
The Edinburgh-based bank stopped accepting applications from the self-employed last July in response to the coronavirus crisis.
Existing borrowers were not affected by the decision, but the bank did not accept new applications for credit cards and loans from the self-employed amid concerns about repayments.
Other lenders tightened lending criteria but Sainsbury’s was the only bank to exclude self-employed borrowers entirely.
In November it allowed self-employed workers to apply for personal loans under £25,000 and from 25 February the self-employed can apply for credit cards, although they are still excluded from personal loans of more than £25,000.
There is a requirement that applicants must hold a Nectar card with the supermarket group for at least six months before applying for a credit card.