Tesco Bank loans
Thinking of taking out a loan? As well as doing your weekly shop, you can also get a loan from Tesco. Read our guide to find out what loans are available and how to apply for them.
Thinking of taking out a loan? As well as doing your weekly shop, you can also get a loan from Tesco. Read our guide to find out what loans are available and how to apply for them.
What is Tesco Bank?
Tesco Bank is the banking arm of the supermarket chain. It aims to help Tesco shoppers to manage their money a little better every day. It’s been around since 1997 and today has more than five million customers across a range of banking and insurance products.
All its products and services are available online or over the phone. Most customers manage their accounts online or in the app. You can also call the customer service centres in Glasgow, Edinburgh and Newcastle if you need help; they’re open seven days a week.
In February 2024, Tesco announced the sale of its loans, credit cards and savings operations to Barclays in a deal worth around £600 million. Tesco will keep its insurance, ATMs, travel money and gift card services.
Which is the best Tesco loan for me?
Whether a Tesco loan is best for you will depend on your personal circumstances and credit history.
Tesco offers personal loans of £1,000 to £35,000 over terms of one to 10 years. Different maximum terms apply to different amounts. For example, for loans under £3,000, the maximum term is three years.
The interest rate you’ll be offered will depend on your personal circumstances, how much you borrow and how long you borrow for.
Tesco loans are fixed rate, which means you’ll keep paying the same amount throughout your loan term.
Why choose Tesco for a loan?
- You could get the money in your account in as little as two hours. This will vary, depending on the outcome of your loan application.
- If you’re a Clubcard member and give your Clubcard number when you apply, you’ll get a better interest rate if you’re accepted.
- Your monthly payments will be for the same amount every month until the loan is paid off. You can choose a payment date that suits you, between the 1st and 25th of the month.
- You can make overpayments with no fees.
If you’re eligible, you could apply to delay your repayments by two months at the start of your loan. This means you won’t need to start paying your loan back straight away. But interest will be charged during the payment break and your overall loan period will be extended by two months, which means you’ll pay an extra two months’ interest.
You can also apply to borrow more, once you’ve made eight consecutive monthly payments on your existing loan. But make sure you can afford to pay back what you borrow.
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6.1% APR representative (correct as of March 2024). Lowest rate is available for Clubcard members on loans from £7,500 to £25,000, over one to five years. Other amounts and terms are available at different rates. |
Eligibility
To apply for a Tesco Bank loan, you need to meet the following criteria:
- Be aged between 18 and 74. If you’re using your Tesco loan for debt consolidation, you must be at least 22 years old. You must be aged under 75 at the end of your loan term.
- Be in employment with no probationary period or have a regular income: for example, a pension
- Have lived in the UK for at least three years
- Have a UK personal current account.
Are there any charges?
Yes, you can be charged for late or missed payments. The missed payments will also be noted on your credit file, which might make it more difficult or more expensive to borrow money in future.
There’s no charge for making overpayments, but if you pay your loan off in full early, you’ll pay a two-month interest fee. Just ask for an early settlement figure to see how much it will be.
Why compare loans with Compare the Market?
Find out what loans you could be eligible for without impacting your credit score
Search for the right Tesco loan, before you apply
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[1] Correct as of September 2024.
Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.
How well is Tesco Bank reviewed on Trustpilot?
Tesco Bank was rated 4.3 on Trustpilot in March 2024.
Frequently asked questions
How much can I borrow from Tesco Bank?
Depending on your circumstances and your ability to be able to afford the repayments, you could borrow between £1,000 and £35,000.
Can I get a Tesco loan with bad credit?
Tesco doesn’t offer loans specifically for people with bad credit.
However, if Tesco can’t offer you a loan, it will share your application with Shawbrook Bank to see if they can offer you an alternative.
How to contact Tesco
You can contact Tesco using the bank’s app. Or call customer service on 0345 600 6016. Lines are open Monday to Friday, 8am-8pm, and Saturday to Sunday, 9am-3pm.
How do I apply for a Tesco loan?
You can get a personalised loan quote on the Tesco Bank website.
But before you do, you might want to find out whether your application is likely to be successful. You can use our loan eligibility checker to see what loans you’re likely to be accepted for, without impacting your credit score.
Can I pay off a Tesco loan early?
Yes, you can overpay or pay the remaining debt in full. Charges may apply.