Tesco personal loans

87% of Tesco Bank customers in our 2020 customer satisfaction survey would recommend the brand to a friend.

The repayment holiday facility is only available at the start of the loan.

Tesco loan calculator

How much do you need to borrow? £

15000

How long do you need to borrow for?

3

years

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Name	Product	Total Payable	Monthly Repayment	Representative APR	Link
Tesco Bank Telephone Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.	Compare	loading Fetching your data...
Barclays Bank Existing Current Account Customer Barclayloan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 5.5% p.a. (fixed). Representative APR 5.5% and total payable £10,848.60 in monthly repayments of £301.35.	Compare	loading Fetching your data...
Creation Financial Services Argos Unsecured Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 9.9% p.a. (fixed). Representative APR 9.9% and total payable £11,527.92 in monthly repayments of £320.22.	Compare	loading Fetching your data...
Lending Works Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 5.8% p.a. (fixed) with an application fee of £0.00. Representative APR 10.0% and total payable £11,543.40 in monthly repayments of £320.65.	Compare	loading Fetching your data...
Zopa Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 5 years at a rate of 8.8% p.a. (fixed) with an application fee of £240.00. Representative APR 9.9% and total payable £12,602.87 in monthly repayments of £210.05.	Compare	loading Fetching your data...
My Community Bank Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 23.9% p.a. (fixed). Representative APR 23.9% and total payable £13,678.20 in monthly repayments of £379.95.	Compare	loading Fetching your data...
Lloyds Bank Existing Customer Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.	Compare	loading Fetching your data...
Tesco Bank Online Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.	Compare	loading Fetching your data...
Hitachi Personal Finance Hitachi Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.5% p.a. (fixed). Representative APR 3.5% and total payable £10,539.72 in monthly repayments of £292.77.	Compare	loading Fetching your data...

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What are Tesco loans?

One of the biggest supermarket chains in the world, Tesco also offers unsecured personal loans at some very competitive rates. If you’re a Tesco Clubcard member, you may be eligible for a further discounted rate.

Formerly a joint venture with RBS, Tesco Bank has been a highly competitive provider of fixed-rate loans since the 90s. You’ll usually get an instant decision when you apply online and if you need to, you can apply to take a short temporary break from repayments.

Our calculator lets you pick how much you want to borrow, over a timeframe that suits you, to estimate how much you would pay back each month and overall.

We base our calculations on Tesco Bank’s representative APR, but it’s important to note that Tesco only has to give 51% of customers the advertised representative APR. Other customers may be offered a higher rate – at the time of writing, Tesco Bank’s maximum APR is 34.5%. The rate you’re offered will depend on Tesco Bank’s assessment of your individual circumstances and the specific loan amount and term that you’re applying for.

Our calculation also assumes that you don’t take a repayment break and you don’t repay early (both are facilities that Tesco Bank offers and both affect the overall cost of your loan).

Key features of a Tesco personal loan

Tesco’s personal loans are unsecured, meaning they’re be based on creditworthiness, rather than by the use of property, vehicles and other assets as collateral. The loans are available for amounts between £1,000 and £35,000 over terms ranging from 1 to 10 years.

While Tesco rates are generally competitive, the representative APR may not be the rate you’ll receive: Tesco will offer you a rate based on assessment of your personal financial circumstances.

• Loan terms from 1-10 years. The loan term is dependant on the amount you are wanting to borrow.
• Loan amounts from £1,000-£35,000. Loan amount can be specific to your needs, down to the pound.
• Fixed monthly repayments. Meaning you’ll pay the same amount each month and you know how much the loan is going to cost you overall.
• Option to take a repayment holiday for the first 2 months for eligible customers. Although this will cost you more overall, as you’ll still be accruing interest during this period.
• Quick decision. If you apply online, you may get an immediate decision.
• Quick access to funds. As little as 5 working days after receipt of the signed loan agreement. When approved, your money will be sent via Faster Payments, and will usually arrive in your account on the same day.
• No set-up fees.
• Preferential rates for Clubcard members. On selected loan amounts.

All interest rates are fixed for the duration of your repayment period, however the rate you’re offered will depend on factors including the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised “Representative APR”.

Tesco loan rates

• Tesco Bank Online/Telephone Personal Loan:
  2.9% p.a. fixed interest rate with no fee, on loans of £10,000 over 3 years. Apply to borrow up to £25,000. Loans are available over terms of up to 7 years, for a variety of purposes.

Does Tesco offer secured loans?

No, Tesco Bank does not currently offer secured or homeowner loans, and instead only offers unsecured personal loans. This means that you won’t need to provide a property or asset as security against your loan, but may not benefit from the competitive rates offered on secured loans.

Do you get Clubcard points for a Tesco loan?

No, you won’t earn any Clubcard points by taking out, or paying off, a Tesco personal loan. However, you can earn Tesco Clubcard points on a Tesco credit card, and your Tesco credit card will actually double as your Clubcard, so there’s no need to swipe both when you checkout.

Can I get a Tesco loan with bad credit?

No, Tesco Bank does not currently offer bad credit loans. If you have a poor credit rating, you’re unlikely to be approved for a Tesco personal loan. If you happened to be approved, you’ll probably be given a high interest rate and unfavourable loan terms, and may not be able to borrow as much as you wanted.

How fast can I get a Tesco loan?

If you apply for a Tesco personal loan online, you’ll receive an instant decision on your loan application. If you sign your loan documents digitally, the money will then be transferred to your account.

If you need to sign your loan documents in person, they should be sent to you within five working days. Once you’ve signed and returned them, your loan funds will then be transferred.

Am I eligible for a Tesco personal loan?

You should only apply for a Tesco personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:

• You must be aged between 18 and 74. You must be aged under 75 at the end of your loan term.
• Be in full time employment with no probationary period, or have been self employed for over two years or have a regular income e.g. pension.
• Have lived in the UK for at least three years.
• Have a UK based bank or building society account that can pay direct debits.
• You must not have a history of County Court Judgements or bankruptcy.

How do I apply?

If you have decided that a Tesco personal loan is right for you, make sure you have the following information handy for your application:

• Your ID.
• Your address details for the past three years.
• Your current income and employment details (payslips and bank statements).

Then simply fill in the application form via their website. Remember that if you apply online you’ll receive a response much quicker.

Frequently asked questions

• How long will it take to get my loan?

  If you apply online, you could get an immediate decision and, if eligible, can digitally sign your loan agreement with Tesco. Once completed, the money will be sent to your bank account – usually on the same day. Applications over the phone take longer, and a decision may take between 5-10 days.

• Can I repay my loan early?

  Yes. If you repay part of your loan early, your monthly repayment amount will stay the same but you can potentially repay the loan more quickly. Bear in mind that if you request to pay off your loan early, you may still be charged interest beyond this point – you’ll be given a final settlement figure and a timeframe in which to pay this amount.

  It’s important to check the early repayment terms before applying for any personal loan. If there’s a likelihood that you’ll be able to clear a loan early, then good early-repayment terms should be an important factor in deciding which lender to use.

• What if I want to borrow more?

  Tesco only offer one loan per customer, so if you want to borrow more you can apply for additional borrowing once you have made a certain number of consecutive monthly payments on your existing loan. Your existing loan will close and a new loan will be provided which will pay off the existing balance and cover the additional amount you want to borrow. You may be charged additional interest to pay off your old loan. This is to cover the number of days from when you apply to receiving your new loan. This can be added to your new loan amount and you would pay interest on this, which may lead to additional cost for you.