If you have a few outstanding debts, a personal loan from Tesco Bank could be an option to help you manage your money better, giving you just one simple monthly payment to make. Loans are available from £3,000 - £35,000 with loan terms from 1 to 7 years.
Available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circumstances. Subject to status.
Having a single monthly payment – rather than several – could be a helpful way of managing your debt to reduce it over time.
Your monthly payments will be for the same amount each month on a date that suits you.
This could help you save money on interest - a charge of up to 2 months interest will be applied.
You could get the money in your account in as little as 2 hours. This will vary depending on the outcome of your application.
If you’re eligible you could apply to delay your repayments by 2 months at the start of your loan.
Find out more about Tesco Bank personal loans by checking our FAQs below.
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 6.6% APR, based on a loan amount of £10,000, over 5 years, at a Fixed Annual Interest Rate of 6.4084% (nominal). This would give you a monthly repayment of £195.23 and a total amount repayable of £11,713.80.
This representative APR applies to loans of £7,500 - £25,000 over 1 to 5 years. We also offer loans between £3,000 - £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.
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.
If you're approved and you're eligible to digitally sign, you should get your loan within 24 hours. Please leave up to 48 hours before calling us.
If we need more information from you, it can take 5 to 10 days for us to make sure everything is okay before we approve your application and send you the funds.
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.
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.
If you make overpayments towards your loan, then you can choose to reduce your monthly payments instead of reducing your term. This means there’s less interest to be charged, which means you could save money overall.
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.
Yes there are 2 ways you can do this:
You 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.
You can pay your loan off in full any time. You'll need to pay a charge of up to 2 months interest 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.
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.
If you miss a loan payment, we'll automatically try to take the payment again within 10 to 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.
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.
A debt consolidation loan is a loan that can be used to pay off other debts. It lets you move lots of different debts into one place, which could help you keep track of payments more easily. When you apply for a debt consolidation loan you can ask for enough money to cover debts you have elsewhere. If you’re approved, you can use that money to pay off your debts and even close those other accounts.
As well as consolidating lots of debts into one monthly payment, a debt consolidation loan could also mean that you pay less interest. Taking out a new loan is also an opportunity to look for a loan that has a lower interest rate than you are paying on your other debts.
You may be able to reduce your monthly repayments if you choose to pay the loan back over a longer period of time. This might mean paying more interest overall but could make payments more manageable in the short term. Always check the total amount you will be expected to pay over the loan period before deciding whether to take out a loan or not.
Whether a debt consolidation loan is a good idea for you or not depends on how much debt you have and what your income is. Some of the benefits of taking out a debt consolidation loan include:
Simpler payments - By putting all of your debts in one place, you can choose to make one monthly payment. This can make budgeting simpler and payments easier to keep track of.
Lower monthly payments - If you have high interest rates on your existing loans or they are over a short period of time, you could lower your monthly payments with a debt consolidation loan.
Debt is easier to keep track of - When you don’t have to juggle lots of different debt repayments, it can be easier to see exactly how much you owe and how quickly you’re paying it off. However, the repayment term for some of the existing debts could be extended and you might pay more interest over time.
A potential payment break - If you apply for a Tesco Bank debt consolidation loan you can also apply for a payment break which, if approved, may mean you do not have to start paying your loan back for up to two months. Interest will still accrue during that time.
Successfully paying off a debt consolidation loan can also help boost your credit score. That said, if you don’t meet your payments every month, you may end up damaging your score.
It may be more difficult to get a loan if you have bad credit, but you may still be able to take out a debt consolidation loan even if you have a poor credit score.
Some lenders are more likely to offer you a debt consolidation loan if it's secured against something, like your house. At Tesco Bank, we offer unsecured personal loans that aren’t secured against your other assets.
You can use our loan eligibility checker to see how likely you are to be approved for a debt consolidation loan without affecting your credit score. If it looks as though you are unlikely to be approved for a debt consolidation loan, there are some things you can do to check and improve your credit score.
You can use a debt consolidation loan to pay off a few different types of debt. That might be:
Credit card debts - Credit cards can be expensive for long term borrowing, thanks to high interest rates.
Overdrafts - Overdrawn bank accounts may mean you’re paying high interest rates and a loan could lower those.
Personal loan debts - If you have several different personal loans, a debt consolidation loan can put them all in one place.
Store cards - These can give you discounts at your favourite stores but can have big fees and high interest rates.
The first step is working out how much you owe and how big a loan you need to pay back the debts you have. You can then apply for a debt consolidation loan for that amount. If you're approved, you can use the money to pay off your existing debts. You then have just one monthly payment for your outstanding debt, which could make your budgeting easier to manage.
Our loans are provided by Tesco Bank, PO Box 27014, Glasgow, G2 9FE.
Tesco Bank is a trading name of Barclays Bank UK PLC. For more information on what this means please go to tescobank.com/transfer-scheme.
Get detailed answers to your questions about our products and more in our Help and Support Centre or contact our friendly, UK-based customer service team.
You can make additional loan payments, settle your loan early or you may be able to apply to borrow more.
You can also log in to Online Banking to manage your account.
