Banks accused over 'rip-off' rates on small loans For the same amount, Barclays charge an APR of 19.9 per cent, NatWest 19.9 per cent, HSBC 18.9 per cent, Santander, 14.9 per cent, Tesco Bank 12.8 per cent and Sainsbury's 12.7 per cent. The findings come as banks spend a small fortune competing for current accout business following the introduction of the new seven-day switch. Moneycomms' Andrew Hagger said: "The established names may be busy pulling out all the stops to win new custom in the current account war, but when it comes to lower value personal loans they're seemingly not interested and extremely uncompetitive. Interest rates are at record lows for those seeking to borrow a five figure sum, but consumers who only want a personal loan for a smaller amount are getting a raw deal by comparison. He added: "Many lenders are cherry picking and focussing all their efforts and marketing budgets on the higher value end of the market." Halifax, which is offering customers £100 to switch banks and take out one of their current accounts, was not immediately available for comment and nor were Barclays. Just a day ago, The Daily Telegraph revealed Barclays was launching a complete review of its overdraft fees and charges after asking customers what it could do better. Separate figures today showed that rising consumer confidence meant shoppers were beginning to load up their credit cards and borrow once more. The British Bankers Association revealed the first annual growth in unsecured loans since June 2009, as credit card lending rose by £175 million. David Dooks, BBA statistics director, said: "People are more confident so they are likely to look at more personal loans and credit card debt. There';s a growing mood that things are not going to get worse, that we are at a turning point.