What kind of loans are Tesco loans?
Tesco loans come from Tesco Bank, the online-only service from Tesco. But does the supermarket’s focus on value, quality and customer service extend to Tesco Bank loans?
Tesco Bank offers unsecured personal loans. Unsecured loans mean you won't be putting your house or car up as security.
In July 2020, Tesco loans ranged from £1,000 to £25,000. APR varies depending on how much you borrow and you might not get the advertised rate.
As with any loan, make sure you read Tesco Bank’s terms and conditions carefully before committing to anything.
Tesco loan calculator
Tesco Bank’s loan calculator can give you an idea of what you’d repay each month on the amount of money you’re looking to borrow. It’ll ask you a few questions before you go on to apply.
Try doing a wider smart search to see all the loans you may be eligible for, not just from Tesco. This'll also save you entering the same details over and over again with different lenders.
How easy is it to apply for a Tesco loan?
You can apply for Tesco loans online with an instant decision. But just because the process is straightforward, doesn’t mean you should rush into it.
Think carefully about what you need the money for and if you can meet the repayments. It’s a big financial commitment.
Tesco’s mobile banking app
If you take out a Tesco loan, you can keep an eye on your balance with its mobile banking app.
How long do I have to repay a Tesco loan?
You can repay your loan over one to seven years. You’ll agree a length of time with Tesco Bank at the start of the loan.
While taking out a loan over a longer period of time can mean lower monthly repayments, you’ll pay back more in the long run. Only borrow what you need and pay it back as soon as you can.
Some customers may be eligible for a payment break at the start of the loan. This usually gives you a two-month window before you start repaying the loan.
While this can seem handy, the longer you take to service a debt, the more you’ll have to pay back.
There can be charges for paying a Tesco loan back early. There are also fees for late payments.
How do I find a loan that's right for me?
Think carefully before taking out any loan - including Tesco loans.
If you decide that a loan is right for you, here are some tips…
- Figure out what you need and how much you can repay monthly
- Use a loan calculator to see what all the costs are
- Check the terms and conditions for charges and fees
- Do a smart search to see which other loans you may be eligible for before applying for a Tesco loan
Personal loans can be useful for some people, but they’re not for everyone. If you're struggling with debt you might want to look at other options.
Think about speaking to the companies you owe money to. They won't want you defaulting in your debt and could offer you a new payment plan.
Last updated 28 July 2020