£20,000 loans with Tesco Bank

A £20,000 loan could help you to fund a kitchen extension or conservatory, or to refinance.

Our £20,000 loan could be perfect for home improvements

  • We know planning a big home improvement project can be stressful. Whether you’re planning a new kitchen, bathroom or an extension, a £20,000 loan could help you cover all the major costs.
  • Depending on your circumstances, this size of loan could be ideal if you’re looking to refinance and streamline your multiple debts into just one easy monthly payment. Seek financial advice if you’re unsure if a loan is right for you.
  • With Tesco Bank, you could get a repayment period of up to 10 years. Find out more by putting your details into our loan calculator.

Before taking out your loan

  • Make sure you have the money to afford your monthly repayments – a loan of this size is a significant financial commitment.
  • Although a long term loan can help spread the cost of repayments, it will cost you more in interest by taking a longer time to pay the money back.

Representative APR

Representative 2.8% APR
On loans from £15,000 - £25,000
For terms 37 - 60 months

      How our loans work

      About our loans

      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.

      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. The minimum rate that we offer is 2.8% APR and the maximum rate is 27.5% APR.

                Representative example

                Loan amount

                £20,000

                  Monthly repayments

                  £357.28

                    Length of agreement

                    60 months

                      Total amount repayable

                      £21,436.80

                        Representative

                        2.8% APR

                          Annual Rate of interest (nominal)

                          2.7647%

                            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.
                              Paying your loan

                              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.

                                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.

                                      Credit checks during application

                                      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

                                          APR and annual rate of interest

                                          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.