UK-based Wal-Mart subsidiary Asda has entered the UK personal loans market and will offer a rate of 5.9% APR on personal loans from GBP 5,000 to GBP 25,000 until February 15, 2007, it has been reported.

<p>The retailer&#0039;s personal loans can reportedly be taken out for a period of between 12 and 84 months and consumers do not have to make repayments for the first three months. When repayments do begin, they will be fixed so that the consumer is not faced with unexpected increases. <br /><br />According to This is Money, the move puts Asda among the most competitive unsecured personal loans providers, as only Barclaycard subsidiary Masterloans and Alliance & Leicester unit Moneyback Bank offer lower rates of 5.7%. <br /><br />Gev Lynott, director of financial services at Asda, told This is Money: This offers the perfect opportunity to re-finance when interest rates are typically on the increase. No upfront fees, one of the lowest interest rates on the market and the option of paying nothing back for the first three months shows that at Asda, we aim to make credit available in a responsible way to as many customers as possible.<br /><br />According to the news website, the move is uncharacteristic of Asda, as the supermarket chain usually matches the prices of its financial products to the demographic of its customer base.</p>