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 personal loans
Our Tesco Bank loan calculator will help you work out how much you'll pay back on a Tesco Bank personal loan.
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
Table: sorted by representative APR, promoted deals first
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
What's in this guide?
id=”overview”>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.
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.
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
Will you be approved?
Check your personalised rates and likelihood of acceptance.
Personal loans ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our customer satisfaction scores (“Customers say”) are based on a survey of 750 customers carried out in December 2019.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
Read more on this topic
-
Future Finance student loans Future Finance offers loans for undergraduate and postgraduate students in the UK. See how they compare here.
-
Lifestyle Loans personal loans review You can apply for a Lifestyle unsecured or guarantor personal loan for up to £7,500, with same-day approval and funding.
-
Coronavirus: Is now a good time to pay off my debts? Many Brits are saving more than ever during lockdown, so is now a good time to pay off your existing debts?
-
Varooma logbook loans Varooma can offer fast, straightforward loans that use your vehicle as security.
-
Methodology for personal loan ratings You’ll find customer satisfaction star ratings on some of our personal loans provider reviews. Here’s how we came up with them.
-
LOQBOX advises customers to check their financial accounts following recent cyber attack Credit-building company LOQBOX was the target of a cyber attack on 20 February, in which customers' personal information is likely to have been compromised.
-
Debt statistics How far in the red is the UK We explore the latest debt statistics for both the government and individuals in the UK.
-
TSB announces new short term loans – but will they be worth it? TSB will offer short term loans for customers looking to avoid expensive overdrafts or payday loans.
-
Koyo loans Koyo claims to be the UK's first online consumer lender based around Open Banking. See how you could get a loan with no credit history.
-
Azure Money personal loans A bad credit provider that only works with brokers, Azure Money matches the needs of a specific set of customers.