Tesco personal loans review May 2019

Tesco is well known for being one of the biggest supermarket chains, but it also offers fixed-rate, unsecured personal loans at competitive rates. And if you’re a Clubcard member, you can get discounted rates on some loans.

Founded almost 100 years ago, Tesco began as a retailer in Hackney, London 1919. Fast-forward to 2017 and Tesco stores are located in over 6,500 locations and the brand has branched out into banking and mobile.

Whether you’re looking to buy a new car, consolidate debt, refurbish the kitchen, or take that desperately needed holiday, Tesco offers competitive and flexible fixed-rate loans. It’s quick and easy to apply online and you might even get a decision on the same day.

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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”.

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.