Tesco loans

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Who is Tesco Bank?

Tesco Bank was launched in 2007 to try and help customers manage their money better. It has five million customers using its banking services and insurance.

It offers a large range of personal finance products including current accounts, travel money and credit cards, as well as car and home insurance.

Tesco Bank facts

Here’s what you need to know:

  • You can borrow between £1,000 and £35,000
  • Loan terms can be one to 10 years
  • You’ll receive an instant decision if you apply online
  • You may be able to take a two-month repayment holiday
  • You’re not charged for overpayments
  • You’ll be charged a fee equivalent to two months’ interest if you repay your full loan early
  • All Tesco loans have a fixed rate of interest
  • Late payments will result in being charged £12
  • Minimum annual percentage rate (APR) available is 3.2% and the maximum APR is 32.5%
  • Having a Tesco Clubcard could help your application
Tesco bank logo

Why choose Tesco Bank for a loan?

Tesco Bank started providing personal loans in 2017 and offers a relatively high maximum loan amount compared to other lenders that typically cap at £25,000.

Tesco Bank won the ‘Best Overall Provider’ award at the YourMoney.com awards, which is the longest running consumer finance awards. It also has a rating of four out of five stars on Trustpilot.

You can choose exactly how much you want to borrow down to the specific pound and may be able to take a two-month repayment holiday during the loan term. However, you’ll still need to pay interest.

You decide what day of the month you want your monthly repayment to be taken and you can use the app to track how much you still owe on your loan easily.

If you have a Tesco Clubcard, it may positively affect your loan application

What kind of loans do Tesco offer?

Tesco Bank solely offers personal loans, sometimes called unsecured loans. This means that the lender doesn’t use an asset, like your home or car, as security for the loan.

All the loans have a fixed rate of interest, which means that you know exactly how much you’ll be charged each month and it won’t change. This can make it easier to budget.

Tesco loan calculator

The loan calculator will let you see approximately how much your loan will cost overall, as well as the interest rate and monthly repayment amount.

All you need to do is enter how much you want to borrow, how long for and what you intend to use the loan for.

How do I find a Tesco Bank loan that’s right for me?

The best thing to do is compare all your options. You don’t want to settle for the first loan you look at because it may not be the cheapest way to borrow.

Use our smart search to find loans from across the market that you’re more likely to be accepted for, without affecting your credit rating.

You can then see how Tesco Bank stacks up against the competition and make a decision looking at the interest rate and APR. Just remember that the interest rate you receive might not be the advertised rate, which only needs to be offered to 51% of successful loan applicants.

How do I apply for a Tesco loan?

You can apply online, over the phone or via post.

Choosing one of the two offline options will mean that it takes longer to complete the process but applying online will give you an instant quote.

You can apply for a Tesco Bank loan from our loan comparison table.

How do I get in touch with Tesco Bank?

You can contact the loan customer services team on 0345 600 6016, available 8am-8pm Monday to Friday, 9am-3pm on weekends.

You can also contact them via social media or post.

FAQs

It’s possible to make overpayments on your Tesco Bank loan without being charged but paying off your loan completely before the term ends will result in a fee equivalent to two months’ interest.

Once you’ve been approved and signed the loan agreement, you’ll receive the money quickly. It could even be the same day.

Be aware that if you’re applying over the phone or via mail, it will take longer for your loan to be approved. Applying online will result in an instant decision.

Related links

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