Home improvement loans

Using a personal loan for home improvements could be a smart way to upgrade or add value to your home without increasing your mortgage, avoiding the hassle of a house move.

A home improvement loan could help cover the cost of your project

  • Whether it’s a new kitchen, loft conversion, new conservatory, garage conversion or a house extension, home improvements are a great way to change your living space to suit you better.
  • A home improvement loan allows you to spread the cost of your project with a clear view of what you’ll pay each month from the start, without borrowing more on your mortgage.

Things to consider before taking out a loan for home improvements

  • Taking out a personal loan is an ongoing commitment so make sure you think about how the loan repayments will work with your future plans.

Representative APR

Representative 2.8% APR
On loans from £7,500 - £25,000
For terms 12 - 60 months
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        Already have a Tesco Bank Loan?

        If you're thinking about borrowing more, we're here to help.

        Why choose Tesco Bank to help you pay for home improvements?

        We have a great low rate of 2.8% APR representative on loans from £7,500 to £25,000 for terms 12 - 60 months.

        When you apply for a home improvement loan from us:

        • If you’re eligible and apply online, you could get the loan transferred to your account by the next day if approved, by digitally signing.
        • We’ll give you an instant decision when you apply online.
        • You can choose which day of the month you’ll make your fixed monthly payment.

        Before you apply for a loan think about how much you’ll borrow, how long you’ll need to repay the loan and what the interest could cost.

            Couple with dogs

            How our loans work​

            About our loans

            Loans are available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circumstances. Subject to status.

            A loan gives you the money you need upfront and lets you spread the cost of paying it back. So whether it's a special holiday, a car or a new kitchen, a personal loan can make it more affordable.

              We offer unsecured personal loans

              This means that if we decide to lend you money, it won't be secured on your home, car or other assets. You can then spend this money on the things you need.

                Available repayment periods

                You can apply for a loan term from 12 to 120 months depending on the loan amount and purpose. Just remember that the maximum repayment period might be lower for certain loan purposes.

                  Borrow exactly what you need

                  We offer loans to cover costs big and small and you can be specific about the amount you need, down to the pound.

                    How interest is charged

                    The interest rate is fixed for the life of the loan.

                    At the beginning of the loan we work out the interest you will pay over the whole length of your loan and add this to your loan amount. We calculate your interest charge by applying interest at a monthly rate based on the APR to the balance of your loan, as reduced by your monthly repayments. We add this to the loan amount and then divide this total by the number of monthly repayments.

                    The loans calculator will give you an example of what it might cost you based on the loan amount and term you want. However, the interest rate we offer may be higher depending on your individual circumstances. The minimum rate we offer is 2.8% APR and the maximum rate we offer is 27.5% APR.

                      Representative example

                      Loan amount


                        Monthly repayments


                          Length of agreement

                          60 months

                            Total amount repayable



                              2.8% APR

                                Annual Rate of Interest (nominal)


                                  The representative APR applies to loans of £7,500 to £25,000 over 12 to 60 months. Other terms and loan amounts are available at different rates.

                                  Getting your loan

                                  How soon can I get my loan?

                                  If you've been approved, you'll receive some important documents within five days, which you'll need to check, sign and return to us.

                                  If you apply online, you’ll get an immediate decision and, if eligible, can digitally sign your loan agreement with us. We’ll then use Faster Payments to send the money directly to your bank account.

                                  Once we're happy with the information you've sent, we'll fully approve your loan and pay the money into your bank account.

                                    Payment break

                                    Take a payment break

                                    Sometimes it can really take the pressure off if you don’t have to start repaying your loan straight away, especially if you’ve got extra expenses to cover.

                                    So when you apply for a loan, you might be eligible to apply for a payment break before starting your monthly loan repayments.

                                    • This break is only available at the start of your loan.
                                    • If your application for this option is successful, then the first payment would be taken the third month after the issue of the loan.
                                    • Interest will be charged during the payment break and your overall loan period will be extended by two months, which means that you will pay an extra two months' interest.
                                    • Your offer documentation will explain the terms of the payment break, so please read everything carefully.
                                    Making repayment​s

                                    Your payment is made by monthly direct debit from the account the loan is paid into. Your first payment will be made one month after issue of the loan on the date you have chosen in your application, unless you apply for an initial payment break (see under Payment break tab).

                                      You'll always know what you have to pay

                                      All Tesco Bank loans are fixed rate. This means your monthly Direct Debit payments will be the same every month until your loan is paid off. Nice and simple.

                                        What happens if a payment is late?

                                        We'll charge £12 each time a loan payment is late and £12 when a default notice is issued.

                                          Can I pay my loan back early?

                                          Yes. But you will be charged up to two months' interest if you choose to settle your loan early.

                                            Find out how much a home improvement loan could cost

                                            We offer a range of loans from £1k to £35k over terms from 1 to 10 years (interest rates vary). Use our loan calculator to quickly work out how much a loan could cost and start your application.

                                            Important Information

                                            Credit checks during application

                                            We'll carry out a credit reference search when you apply for a loan and a credit score will be calculated based on the information you enter and your credit reference information. This will help us make a decision on whether or not we're able to lend to you. We'll then let you know the decision and what the status of your application is.

                                              Who provides these loans

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