A price war has broken out in the personal loan market, with the average rate on an unsecured loan of £7,500 falling to 7.89pc – the lowest level since November 2008.

However, those looking to borrow a smaller amount will not see the benefits of rate cuts as the average rate on a £3,000 loan has increased by 2.19 points to 15.12pc in the same time period, while the average cost of a £5,000 loan has increased by 1.6 percentage points, according to moneysupermarket.com.

The most competitive deals are available on loans of between £7,500 and £15,000 and eight providers have reduced their rates since December. For instance, this week Santander cut its rate from 7.8pc to 7.3pc on loans for customers using comparison sites, while Sainsbury’s Finance reduced its rate to 7.4pc and Marks & Spencer Money has launched a new loan at 7.5pc.

Tim Moss, the head of loans and debt at moneysupermarket.com, said: “With many consumers reviewing their finances in the New Year, it is great to see providers creating some healthy competition in the unsecured loans market after a period of relative inactivity.

“For those looking to borrow over £7,500 there are some excellent deals and in some cases it pays to borrow slightly more as it would cost you less overall. Unfortunately, we have yet to see rates drop as rapidly for smaller loans.”

However, Andrew Hagger, a spokesman for Moneynet.co.uk, pointed out that the rate cuts had been targeted at borrowers with existing loans.

He said: “It’s a shame that the rate cutting has, apart from Tesco, Santander and M&S Money, been targeted at existing customers only.” www.telegraph.co.uk

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A ceremonial big check for $605,000 was presented Thursday by Donnie Thomas, acting state director of USDA Rural Development, to Grace Fricks, chief executive officer of Access to Capital for Entrepreneurs (ACE), to provide micro-loans to small rural businesses in North Georgia, including in Whitfield and Murray counties.

Funding for micro-loans, those less than $50,000, is available through the Rural Microentrepreneur Assistance Program (RMAP). ACE became eligible to draw down funds right before Christmas.

“This should be another avenue of support for rural entrepreneurs in need of loans,” said Thomas. “We realize that many small businesses are running into problems accessing capital. We hope this program will help.”

ACE will serve most of Northeast Georgia, including the counties of Banks, Barrow, Bartow, Carroll, Catoosa, Chattooga, Cherokee, Clayton, Cobb, Coweta, Dade, Dawson, Douglas, Elbert, Fannin, Fayette, Floyd, Forsyth, Franklin, Gilmer, Gordon, Habersham, Hall, Haralson, Hart, Heard, Henry, Jackson, Lumpkin, Madison, Morgan, Murray, Newton, Oconee, Oglethorpe, Paulding, Pickens, Polk, Putnam, Rabun, Rockdale, Stephens, Towns, Union, Walker, Walton, White and Whitfield.

As businesses pay back loans, the funds are then available to re-lend to another business, creating a renewable loan resource.

Funding levels for RMAP for fiscal year 2011 are not currently known. The initial announcement said $4 million would be available nationwide. However, the U.S. government is currently under a continuing resolution. Specific funding amounts for fiscal year 2011 will not be known until a budget is signed by Congress.

Loans through this program can be used for working capital; purchase of furniture, fixtures, supplies, inventory or equipment; debt refinancing; business acquisitions; and purchase or lease of real estate, with qualifying conditions.

Loan funds cannot be used for a variety of purposes, including, but not limited to, construction costs or assistance that will cause conflict of interest issues.

Businesses interested in applying for loans can contact ACE for assistance (www.aceloans.org). Interest rates on the ACE loans will be between 6 to 12 percent and the point of contact is Sandy Headley (headley@aceloans.org).

For more information on Rural Development programs visit www.rurdev.usda.gov/ga.

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Jan 06 2011 - Honda has scaled back its lease incentives quite a bit in January, but is still offering low auto loan rates on most of its vehicles.

Last month, Honda offered sign and drive lease deals on eight models. In January, only two vehicles can be leased with $0 down payment. The Accord Coupe is $300 a month for 36 months. The first payment is waived under the sign and drive lease incentive. The Civic Sedan is $200 a month for 36 months under the same sign and drive lease deal.

These two cars are also available with lower payments by putting a few thousand dollars down. The Honda Accord Coupe will cost $199 a month with $3,499 down, while the Civic Sedan is $149 a month with $1,999 down.

The 2011 Honda Accord Coupe can be leased for $300 a month with no down payment in January.

Honda also has lease deals on its Accord Sedan and CR-V in January. The Accord Sedan is $199 a month and the CR-V is $219 a month, both for 36 months.

Honda is continuing its 0.9 or 1.9 percent car loan rates through January on most models. The Element is the only vehicle available at 1.9 percent for 36 months. The 0.9 percent auto loan rate applies to the Accord Coupe, Accord Crosstour, Accord Sedan, Civic Coupe, Civic Hybrid, Civic Sedan, Civic Si Coupe, Civic Si Sedan, CR-V, Fit, Insight and Pilot. All models under the 0.9 percent rate deal are available up to 60 months, except the Pilot, which is available up to 36 months.

Higher interest rates are available for longer car loan lengths on some models. Also, some newer 2011 models have shorter loan lengths at the discounted interest rate.

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