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the borrowers

Some of the big high-street lenders have been cutting the rates on personal loans, bringing the average rate for a £7500 loan down to 6.67% – the lowest level since October 2007.

If you were to borrow £7500 over five years, you would therefore save on average £239 in interest compared with the previous year.

The rates on larger loans are also falling. The cheapest rate for a loan of £10,000 over five years is now 6.0%, compared with 8.4% a year ago.