Compare Tesco Loans with Top UK Loan Providers
Selected Personal Loan Deals
£1,000 to £25,000
Excellent Credit History Only!
The Representative APR is 8.3%Representative Example: Based on a loan amount of £4,000 over 36 months at an interest rate of 8.3% p.a. (fixed). Monthly repayment £125.34. Total amount repayable £4,512.24
- Good Credit Only
- Loans from £1,000 to £25,000
- No arrangement fees or hidden charges
- Instant online decision
- Funds transferred within 2 working days
- No penalty for over payments
- You must be aged between 21 and 70 and have been a permanent UK resident for 3 years
- You must have an annual income of at least £12,000 and have a UK bank or building society account
- You need to make payments on time or you will be charged a late payment fee. Missing payments could have severe consequences on obtaining future credit
- Post Office Personal Loans are provided by Bank of Ireland (UK). Post Office Limited is a credit broker and not a lender
Tesco offer personal loans with low rates starting from 3% APR on terms from 1 to 5 years.
- Borrow between £1,000 and £25,000
- Instant decision when you apply online
- Repayment periods from 1 to 5 years
- Payment holidays for eligible customers
- Fixed monthly payments on your chosen date
- Eligible customers can apply for a 2 month payment holiday
- Better rates in some cases for Tesco Clubcard holders
- Longer terms possible but different rates apply
To be eligible for a Tesco loan you must:
- Be aged between 18 and 74 years old
- Be in employment with no probationary period, or have regular income e.g. pension
- Have lived in the UK for at least 3 years
- Have a UK personal current account
Tesco loan calculator
If you are interest in a Tesco loan and would like an indication of how much your repayments might be you could use the Tesco Bank loan calculator.
However remember the APR you are given if you chose to apply is not necessarily the same as the one the calculator uses, yours may be affected when the lender takes your personal financial circumstances into account such as; your credit score, how much you earn and if you have any existing credit commitments.
The calculator provides monthly repayments based on the loan and term you require, providing a total amount you will be expected to repay.
Your financial circumstances will also influence how much a lender is willing to loan you, just because the maximum that can be borrowed with this plan is £25,000 it does not guarantee that anyone can borrow that much. As with all lending what you can borrow and the rate offered will be subject to status.
How is interest on the loan charged?
Loan interest is charged on a daily basis. The interest rate you are offered is fixed for the term of the loan.
Before you apply for a personal loan
There are many loans available on the market from a range of different lenders so it is wise to shop around before you apply for one to try and find a loan suitable to your specific needs. You may want to think about what features are most important to you. Tesco personal loans are offered on an unsecured basis with interest charged on a daily basis. Tesco offer a payment break option on their loan where you don’t have to start repaying the loan straight away. This can take the pressure off as your first repayment would be taken on the 3rd month after the loan is paid.
Please note this option is not available to everybody and you will be charged interest during the payment break and your loan will be extended by 2 months. Tesco Bank will also charge you 2 months interest if you repay your loan early. For late payments Tesco will charge £12 each time. Tesco offer a mobile banking app which allows you to keep up to date on your loan balance and when re-payments are due.
When apply for a loan as part of the application process TESCO Bank will carry out credit checks on you which will appear on your credit file. Your credit rating is a key consideration in determining whether you will be successful in getting a loan.
If you have a low credit score which may be down to a number of factors it may be worth spending some time in trying to improve this score before making an application e.g. paying off existing credit cards. Generally speaking the lower your credit score the higher the rate of interest lenders will charge as they will see you as a higher risk.
You may also wish to consider whether a unsecured loan is right for you. For example if you already have the required funds but in a savings account it may be better off using this money. This is because the interest you earn on savings may be less than the interest you would be required to pay on a loan of the same size.
Also consider that if you are thinking of taking out alone to consolidate debt remember that spreading your payments over a longer term means you may ultimately be paying more overall than with your existing arrangements, even if the interest rate on this new loan is less than the rates you have at the moment.
As with all credit agreements it is important you read the terms and conditions carefully to ensure there are no surprises. In order to take out a loan you will be required to provide the following:
- Your current residential address
- Details of your income and employment
- Details of your monthly in-comings and outgoings
- Your credit history ( the bank will carry out a credit reference search when you apply for a loan with a credit score calculated which takes into account the information you submit on your application and your existing credit history)
If you take out a Tesco personal loan and you decide you need to borrow more, you will have to make 8 consecutive payments first. The way this will be handled is that the original loan will be paid off by Tesco and a new loan for the greater amount will be made available to you. The bank will charge up to 28 days interest to pay off the existing loan arrangement. If you also change the loan term the monthly repayment amount will be different and you may pay more for the finance.
How long will it take to get a loan approved from TESCO?
When you apply online you could get an instant decision. If that happens you will get confirmation of the loan offer and agreement in the post or digitally. Faster Payments will be used to send you the loan. This can take up to 48 hours – with money being available for withdrawal as soon as funds hit your account. If you apply by phone the process can take between 5 to 10 days.
If you provide your mobile phone number to Tesco they will send you a SMS when funds are sent to your account.
If you have any questions about the loan application process you should contact the TESCO customer service line
If you take out the loan and you change your mind you have 14 days from receiving the confirmation letter to inform Tesco you no longer require the loan.
Tesco offer a range of other useful financial services including savings products and insurance including pet insurance and travel insurance.
*If a lender has pre-approved for a loan product this means they have conducted a soft search of your credit file and there is a good chance they will lend to you. Pre-approval does not guarantee you a loan. All loans are subject to lender and provider requirements and approval.