Are you feeling the pinch and looking for a loan?

With the summer holidays fast approaching and times being tougher than ever before, many households are feeling the pinch. Whether it is for a new car, home improvements or a family holiday, a lot of us are considering taking out a loan to tide us over.

A loan is in essence a debt; borrowed money using a possession for example a car or house as collateral against the amount borrowed, and monthly payments made over a predetermined time period at a set interest rate or APR. It seems as though almost everybody is offering loans and almost anybody can get one assuming they have something valuable enough to hold against it. We take a look at some of the best deals out there at the moment.

For amounts between £5000 and £7500, the best deal at the moment is with Sainsburys who are offering an APR of 8.2% if the loan is repaid in less than three years, or 8.3% if it takes between four and five years. The Post Office is offering an APR of 8.4% for the same amount and Santander have an APR of 8.6% for this amount.

If you are after a bigger amount, between £7501 and £15000, the best deal is again with Sainsburys who offer an APR of 6.7% if it is repaid in less than 3 years, or 6.8% for a four to five year term. Both these offers are for Nectar card holders only. Alliance & Leicester are offering 6.9% for the same amount and Marks and Spencer offers 6.9% for this amount stipulating that the borrower must be aged over 30 or a homeowner.

Before you commit to a loan you must ensure that you are able to meet the monthly payments or else you could find yourself in greater financial trouble.