Home improvement loans
Homeowners looking to renovate or enhance their properties can apply for a home improvement loan to complete the work.
Who is Tesco Bank?
Tesco Bank is a UK-based financial services provider and a subsidiary of Tesco, one of the country’s largest retailers.
It offers a range of banking products, including credit cards, personal loans, savings accounts, and insurance.
Customers can manage their accounts through online and mobile banking, as well as access customer support services. Tesco Bank also provides travel money and car finance options.
Founded in 1997, it operates with a focus on convenience, particularly for Tesco shoppers, offering benefits such as Clubcard points on certain transactions.
The bank does not have traditional high street branches, instead providing services digitally and via telephone support.
What types of loans does Tesco Bank offer?
Tesco Bank provides unsecured personal loans that can be used for various purposes, including:
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Car loans
If you’re looking to purchase a new or used vehicle, Tesco Bank's car loans offer flexible financing solutions, enabling customers to manage their repayments effectively.
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Debt consolidation loans
Debt consolidation loans allow customers to merge multiple debts into a single, manageable monthly payment, potentially reducing overall interest costs and easing financial stress.
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Wedding loans
Planning a wedding can be financially demanding and a wedding loan can provide the necessary funds to cover expenses, ensuring that couples can focus on their special day with no immediate financial concerns.
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Holiday loans
Finance a dream holiday with fixed repayments and flexible borrowing options
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Personal loans
Borrow with fixed monthly payments and no arrangement fees. Loan terms range from 1 to 10 years
How much can you borrow with Tesco Bank?
Tesco Bank typically offers personal loans ranging from £3,000 to £35,000, with repayment terms between 1 and 10 years.
The exact amount you can borrow depends on your credit rating, income, and affordability checks. Clubcard members may access lower rates.
To be eligible for a Tesco Bank loan, you must meet the following criteria, including:
Being age 18 or over
Being a UK resident
Having a regular income to afford repayments
Not having more than one other active Tesco Bank loan
Meeting these criteria does not guarantee approval, as Tesco Bank will conduct full credit and affordability checks before offering a loan.
Key features of a Tesco Bank loan
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Fixed interest rates
Benefit from predictable monthly payments for the duration of the loan term
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Overpayment and early repayment
Make extra payments to reduce your loan balance. You can also pay off your loan early, though charges may apply.
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Payment breaks
Eligible customers can take a two-month payment break for added flexibility
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Flexible repayment dates
Adjust repayment dates to better suit your financial situation
How to apply for a loan with Tesco Bank
These are the steps you should take to apply for an Tesco Bank loan:
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Check your eligibility
Use the online eligibility checker to see if you qualify. It won’t affect your credit score
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Choose loan amount and term
Select how much you wish to borrow and your preferred repayment period
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Complete the application
Provide personal, financial, and employment details through the online form
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Credit and affordability check
Your application will be assessed based on a number of factors including your creditworthiness and your ability to repay the loan
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Receive a decision
If approved, you'll receive a loan offer to review and accept
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Receive funds
After acceptance, funds are typically transferred to your account promptly
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Frequently asked questions
How quickly will the money be in my account?
Once accepted, funds for a Tesco Bank loan are usually transferred to your account within one working day.
Are there any fees with a Tesco Bank loan?
No, there are no arrangement fees with a Tesco Bank loan
Is Tesco Bank regulated and trustworthy?
Yes, Tesco Bank is fully regulated and authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), ensuring it meets strict financial standards.
Deposits are also protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
As a subsidiary of Tesco, one of the UK’s biggest retailers, it is a trusted provider of financial services, offering secure banking and transparent lending.
Can I make overpayments or repay a Tesco Bank loan early?
Yes. You can make overpayments or settle your Tesco Bank loan early. Overpayments are free of charge and are applied to reduce the outstanding balance, which in turn reduces the amount of interest you’ll pay.
If you choose to pay your loan off in full before the end of the term, Tesco Bank will provide a formal settlement figure. This figure includes any interest you are due back and may include a charge of up to two months’ interest as an early repayment fee.
How to compare loans with MoneySuperMarket
We’re here to help you find the right loan for your needs
Reviewed on 22 Dec 2025 by
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