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Tesco Bank Loans

Tesco Bank offer a range of loan products as well as various other banking and insurance services

published: 21 September 2020
Read time: 5 minutes

Tesco Bank offers personal loans to suit a variety of purposes as well as other banking and insurance services

Tesco Bank opened in 1997, and in 2008 came entirely under the ownership of Tesco Plc. They offer a number of financial products, including loans, credit cards and savings products.

With a Tesco Bank loan, you could get on top of your finances, upgrade the family car or get started on some much-needed home improvements. Find out more about a Tesco loan in our handy guide below.

What loans can I get from Tesco Bank?

Tesco Bank offers fixed-rateunsecured personal loans with the following features:

  • A range of loan amounts payable over a selection of loan terms

  • If you want to repay your loan early, you can at any time – but you’ll be charged up to two months' interest if you do

  • If eligible, customers can apply for a two-month payment break

  • You can choose which day of the month you make your repayments – and change the date later if you want

  • Pay more whenever you want so you can pay off your loan quicker - early settlement charges apply 

  • Instant decision when you apply online

  • Mobile banking app to keep an eye on your loan balance

  • It’s safe and regulated by the Financial Conduct Authority (FCA)

Man on laptop

Frequently asked questions about Tesco Bank loans

What interest rate will I get with Tesco Bank?

The interest rate is given as the APR (Annual Percentage Rate), however the advertised APR only has to be offered to 51% of applications. The rate you’re given may be lower or higher, depending on the loan you want to take out and your own personal financial circumstances.

Loans from Tesco Bank have a fixed interest rate, meaning the amount you pay back every month will stay the same. This can help with your budgeting, as you’ll know how much you have to pay each month.

What determines my APR?

A number of factors affect the rate of APR you will be offered – it will likely differ from the representative APR shown and will be based on your personal circumstances, the amount you want to borrow and the repayment term. Loans are subject to application, financial circumstances and borrowing history.

If you’re a Tesco Clubcard member then you’re eligible for preferential rates as an existing customer.

Does applying for a Tesco loan affect your credit?

Applying for a loan, whether it’s with Tesco Bank or any other provider, will leave a mark on your credit report – and too many of these, successful or unsuccessful, is likely to make lenders hesitant. However, unsuccessful loan applications are the more damaging.

When you compare loans with MoneySuperMarket, we perform a soft search that won’t harm your credit score. We’ll also show you which loans you’re pre-approved for, so you know that if you apply, you’ll definitely be accepted – and you’ll definitely get the deal you see.

This way you’ll know where you stand, helping you apply with confidence and peace of mind.

How long will it take for my loan be approved?

If you apply online you could get an immediate decision and, if eligible, you’ll be able to 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 could take up to ten days.

How long will it take to receive the money?

Once your online application has been approved and you’ve signed your agreement, the money will be paid straight into your bank account.

Can I change my mind after taking out a loan?

You have the right to cancel your loan agreement within the first 14 days of receiving your loan agreement letter. You don’t need to explain why you are cancelling and you will not need to pay an early settlement fee to cancel.

If you do not repay the loan within 30 days, you will be charged interest on the amount outstanding as detailed in your Credit Agreement.

Can you pay off a Tesco loan early?

You can pay back your Tesco Bank loan early, but you’ll be charged up to two months’ interest.

Do you get Clubcard points for a Tesco loan?

Tesco do not offer Clubcard points on loan repayments.

Can I increase my Tesco Bank loan?

If you already have a Tesco Bank loan and you have made a certain number of monthly payments for your existing loan, you may be able to apply to borrow more.

Only one loan is allowed per customer, so if you do want to borrow more, your existing loan will be closed, and the new loan will pay off any existing balance and cover the additional amount you want to borrow. There is likely to be a minimum additional amount above your existing loan balance you’ll be able to borrow.

Be mindful that if you choose to cancel the new loan within the cooling-off period, you won’t be able to reinstate your old one. You will likely be charged up to 28 days interest to pay off your loan.

Am I eligible for a Tesco Bank loan?

The main factor determining whether you’ll be accepted for a Tesco Bank loan is your credit history. You can check this for free with MoneySuperMarket’s credit monitor tool and it won’t affect your credit score.

Tesco Bank loans have the following eligibility criteria:

  • You must be between 18 and 74 years old

  • You should be in employment and not on probation, or have a regular income – such as a pension

  • You should have lived in the UK for at least three years

  • You should have a UK current account

What documents do I need for a loan?

You can apply for a Tesco Bank loan online, over the phone, or through a postal form. Before you apply you should make sure you have the following details available:

  • Your bank information, including your sort code and account number

  • Information about your incomings and expenditures

  • Your credit balances

  • Your residential address details covering the previous three years

  • Your current employer’s address

How do I apply for a Tesco Bank loan?

You can find a better loan deal when you compare your options on MoneySuperMarket. Just tell us a bit about the loan you’re applying for, including what it’s for and how much you need, and you’ll be able to see a list of quotes tailored for your needs.

You can compare deals by their APR, any fees or charges, and the likelihood of you being accepted if you apply. As soon as you’ve found the loan you want, simply click through to the provider’s website to finalise your application.

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