Loans – Low Interest Bank Loans – Tesco Bank

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  • Amounts are available from £1,000 to £35,000And loan terms of 1 to 10 years.
  • Take a payment breakIf you’re eligible you could apply to delay your repayments by 2 months at the start of your loan.
  • Same day fundsYou could get the money in your account in as little as 2 hours. This will vary depending on the outcome of your application.
  • Fixed monthly payments on a date you chooseYour monthly payments will be for the same amount each month. And you can choose a payment date that suits you.
  • Make overpayments with no feesThis could help you pay off your loan faster and save money overall.
  • Pay off your loan earlyPay your loan off in one lump sum and you could save money on interest – a 2 month interest charge will be applied.
  • Apply to borrow moreIf you need to borrow more, you may be able to do so.
  • Clubcard holders could receive a better rateEnter your Clubcard number when you apply.
  • Find out more about our loans by checking our FAQs below.

Our lowest rate is available on loans from £7,500 – £19,999, over 1 – 5 years. Other amounts and terms are available at different rates.

Use our repayment calculator to tell us how much you want to borrow, and we’ll show you an example of what you might repay.

Loan calculator Resume saved application

Looking to borrow more, or simply have some questions? Visit our existing loan customer page.

  • Can I apply? And what rate will I receive?
  • Is a credit check done during my application?
  • How soon can I get my loan?
  • How do I make my monthly payments?
  • Will my monthly payments ever change?
  • Can I take a payment break?
  • Can I pay my loan back early?
  • Can I apply to borrow more?
  • What happens if I miss a payment?
  • What is APR (Annual Percentage Rate) and annual rate of interest?
  • Who provides the loan?
  • How to contact us
Can I apply? And what rate will I receive?

Anyone can apply for a loan as long as they’re a UK resident and aged 18 or over. When you apply we’ll ask some questions about your circumstances to check that we can offer you a loan.

If you’d like to see how likely you are to be accepted before applying – and without impacting your credit score – use our Loan Calculator and hit ‘check my eligibility’.

Representative 4.9% APR, based on a loan amount of £10,000, over 5 years, at a Fixed Annual Interest Rate of 4.7933% (nominal). This would give a monthly repayment of £187.76 and a total amount repayable of £11,265.60.

This representative APR applies to loans of £7,500 – £19,999 over 1 to 5 years. We also offer loans between £1,000 – £35,000 and have terms available between 1 to 10 years.

The rate you’re offered may differ as that depends on the amount you apply for and our review of your circumstances. The maximum APR you could expect is 34.5% APR.

Is a credit check done during my application?

Yes, we do a credit check when you apply for a loan.

You can find out how likely you are to be accepted first without affecting your credit score by using our Eligibility Checker. This runs a soft search on your file and keeps your credit score safe.

How soon can I get my loan?

If you’re approved and you’re eligible to digitally sign, you’ll most likely get your loan within 2 hours, but please leave up to 24 hours.

In some cases we might not be able to accept your application straight away. In that case we’ll need to get more information from you which can take 5 to 10 days for us to make sure everything is okay before we approve your application and send you the funds.

How do I make my monthly payments?

You’ll pay the same amount each month by Direct Debit on a date you choose.

Your first payment will be taken one month after you get your loan unless you’ve been accepted for a payment break in your application.

Will my monthly payments ever change?

No, our loans are a fixed rate which means your monthly Direct Debit payments will be the same every month until your loan is paid off. Nice and simple.

If you make overpayments towards your loan, then you can always choose to reduce your monthly payments instead of reducing your term, which of course would mean you could pay less each month. Though remember, you usually save more on interest by reducing the term.

Can I take a payment break?

When you apply for a loan you may be eligible for a 2 month payment break at the start of your loan. This means you won’t start paying your loan back straight away.

Interest will be charged during the payment break and your overall loan period will be extended by 2 months, which means that you’ll pay an extra 2 months’ interest.

If you’re struggling with your payments throughout your loan and feel you need a break, we can still help. Visit our financial difficulty page to find out more.

Can I pay my loan back early?

Yes, there are 2 ways you can do this:

By making extra paymentsYou can do this at any time during your loan without paying any fees. These overpayments will go towards reducing the length of your loan (unless you ask us to reduce your monthly payments instead). This means there’s less interest to be charged, which means you could save money overall. There are various ways you can make these payments.

By paying your loan off in fullYou can pay your loan off in full anytime. You’ll need to pay a 2 month interest charge for doing this, but you could save money on interest overall. You can find out how much it would cost to settle your loan early, and how much you could save, at any time by asking us for an Early Settlement Figure.

Can I apply to borrow more?

Yes, you can apply to borrow more once you’ve made 8 consecutive monthly payments on your existing loan.

You can find out more about borrowing more on our existing customer page.

What happens if I miss a payment?

If you miss a loan payment we’ll automatically try to take the payment again within 10-14 days.

If you’re struggling to make your monthly payment amount, please don’t panic, we’re not here to add to the stress, we’re here to help. All you need to do is reach out to chat about your situation. Our page on financial difficulty tells you more about what we can do to help and how to get in touch.

If you don’t get in touch, and end up falling behind on your repayments, there could be charges for late or missed payments. So it’s important that you reach out to us as soon as you can.

What is APR (Annual Percentage Rate) and annual rate of interest?

The APR is the total cost of borrowing, as a percentage of the amount you owe, over a year.

The APR is calculated from the annual rate of interest plus any upfront fees. It gives you a way to compare the cost of different loan and credit offers.

The annual rate of interest is the amount of interest that will be charged on your loan, as a percentage of the amount you owe, over a year.

Who provides the loan?

Our loans are provided by Tesco Bank, PO Box 27014, Glasgow, G2 9FE

How to contact us

Need a few questions answered? Our UK-based teams are here to talk to you seven days a week. Lines are open Monday to Friday, 8am-8pm, and Saturday to Sunday, 9am to 3pm.

Check our different phone lines based on your query.

For more loan FAQs, visit our Community.



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