Tesco loan calculator
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What's in this guide?
- Tesco loan calculator
- What are Tesco loans?
- How do Tesco Bank loans compare against the competition?
- Key features of a Tesco personal loan
- Does Tesco offer secured loans?
- Do you get Clubcard points for a Tesco loan?
- Can I get a Tesco loan with bad credit?
- How fast can I get a Tesco loan?
- Am I eligible for a Tesco personal loan?
- How do I apply?
- Frequently asked questions
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.
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.
What is APR?
The annual percentage rate (APR) is designed to provide an annual summary of the cost of a loan, taking into account both interest and any mandatory charges (for example an application fee, – although these are thankfully now pretty rare in the world of unsecured personal loans).
All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
However, almost all lenders tailor APRs to the applicant – in other words, if your credit record isn’t as strong as other applicants’ you may be offered a higher APR. The advertised representative APR is the APR that a lender realistically expects at least 51% of successful applicants to get. Lenders like Tesco, which battle it out with other banks to advertise the very lowest representative APRs are likely to have high credit-score-expectations when it comes to offering that advertised representative APR.
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:
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
Will you be approved?
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