Home improvement loan

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

Clubcard Prices

Enter your Clubcard number when you apply and if you're accepted you'll get a better rate.

    What is a home improvement loan?

    • 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.

    What can I use a home improvement loan for?

    • 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 suite you better.

    What to consider before taking out a home improvement loan

    • 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.

    Find out more about our home improvement loans below or by visiting our personal loans page.

        Clubcard Loan Calculator

        This is an illustrative example. The rate you're offered depends on the loan term and amount chosen, as well as your individual circumstances.

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        It's easy to join Clubcard now and apply for a loan today.

        Error: Please let us know what you’ll use this loan for

        What will you use the loan for?

        We mean a loan for home improvements like replacing permanent fixtures and fittings such as your kitchen or bathroom, adding double glazing, adding a conservatory, adding an extension or making structural changes.

        If you are decorating or replacing carpets please choose something else

          We will only lend for debt refinancing or debt consolidation if you are 22 or older

            Error: Sorry we only offer between £3,000 and £35,000

            Error: Please make sure the total amount you'd like to borrow is between £3,000 and £35,000

            How much do you want to borrow?

            3000 35000

            Error: Sorry you can only borrow for a period of between 1 and 7 years

            Error: The maximum length of a loan in these circumstances is 3 years

            Error: The maximum length of a loan in these circumstances is 5 years

            Error: The maximum length of a loan in these circumstances is 7 years

            Over how long?

            months (5 years)
            12 120

            Without a Clubcard

            Clubcard Price

            Monthly repayments


            Total repayable

            Clubcard Price
            Possible saving with a Clubcard £ Enter your Clubcard number when you apply

            Representative Example

            Representative APR, based on a loan amount of , over , at a Fixed Annual Interest Rate of , (nominal). This would give you a monthly repayment of and a total amount repayable of .

            Why choose a home improvement loan from Tesco Bank?

            • Clubcard members get a better rate if they're accepted.
            • 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.

                How our home improvement loans work​

                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.

                Loans are available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circumstances. Subject to status. The maximum APR you could receive is 34.5% APR.

                Tesco Bank Loans: PO Box 27014, Glasgow, G2 9FE.

                  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.

                          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.

                            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.

                            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.

                              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 make additional payments to my loan?

                                  Yes, you can do this at any time at no extra cost. It may help pay off your loan faster, reducing the amount of interest you pay which would save you money overall. You can learn all about what this means for your loan on our page about additional payments.

                                    Can I pay off my loan early?

                                    You can do this at any time which could save you money on interest charges. Remember to factor in a two-month interest fee when you settle early though. For more on early settlement figures visit our page on paying your loan off early.

                                      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.

                                          What do we mean by Annual Percentage Rate (APR) 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.

                                            Home improvement loans can be for everything from painting and decorating to fitting a new kitchen. A Tesco Bank Home Improvement Loan is a personal loan that you can use for whatever you would like.

                                            To get one, you first need to have a look at how much money you’ll need for the improvements you have planned and then apply for a loan for that amount. You will also be able to say how long you would like to take your loan out for, which could be anywhere from 12 to 120 months.

                                            We’ll then carry out a credit reference check to see if you’re eligible for a loan with us. We’ll let you know our decision as quickly as possible and if you’re approved, we will send the money to your bank within a few days.

                                              There are a few things to think about when you’re choosing a home improvement loan, like:

                                              Whether you can afford the repayments - This is the biggest thing to think about when you’re hoping to take out a loan to make some improvements at home. Work out whether you’ll be able to fit the repayments into your budget with the help of our loan calculator.

                                              How much you need to borrow - When you’re planning a big improvement or some serious DIY, some time doing your sums can come in very useful. When you’re taking out a home improvement loan, you’ll want to know it can cover the project you have in mind.

                                              What your credit score looks like - Before applying for a home improvement loan, it can be a good idea to find out whether you have a good credit score. This can affect how likely it is that you will be approved. You can also use our eligibility checker before applying.

                                                You might be able to get a home improvement loan, even if you have bad credit. When you apply for a loan, we will have a look at your credit history to find out if you are eligible for a loan with us. Your credit history can also have an effect on what interest rate we offer you, if you are approved for a loan with us.

                                                It’s a good idea to check your credit score before applying for things like a home improvement loan, as being turned down can have a negative impact on your score. You can find out how likely you are to be approved for a Tesco Bank Home Improvement Loan without affecting your credit rating by using our loan eligibility checker.

                                                  Contact us - we're here to help

                                                  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 5pm.