Long term loans

Our 10 year loan term allows you to keep your regular repayments lower by paying your loan back over a longer period of time. Our long term loans could be a great option for those that need a bit of extra time, but means you will pay back more than taking a shorter term for your loan.

You could repay your loan over 10 years

  • We offer a 10 year term on loans between £10,000 and £25,000.
  • Tesco Bank is a leading provider when it comes to long term loans. Most loans on the market need to be repaid within just 7 years.

Things to consider when taking out a long term loan:

  • Although a long term loan can help spread the cost of repayments, it could cost you more overall by taking a longer time to pay the money back. Our handy loans calculator can give you an indication of how much more this could be in an instant.
  • 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 long term loans below or by visiting our personal loans page.

        Long term 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.

        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 £1,000 and £35,000

            Error: Please make sure the total amount you'd like to borrow is between £1,000 and £35,000

            How much do you want to borrow?

            £
            1000 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

            months (5 years)
            12 120

            Calculator Results

            Monthly repayments
            APR
            Total amount repayable This includes a total interest cost of

            Do you have a Tesco Clubcard?
            Enter your Clubcard number when you apply as it may allow us to offer you a better rate

              Representative Example

              Representative 6.4% APR, based on a loan amount of £10,000, over 8 years, at a Fixed Annual Interest Rate of 6.2196% (nominal). This would give a monthly repayment of £132.48 and a total amount repayable of £12,718.08.

              Why choose Tesco Bank for a long term loan?

              • We’ll give you an instant decision when you apply online.We’ll give you an instant decision when you apply online.
              • 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.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.
              • Take a two-month payment break at the start of your loan, if eligible. Please note, interest will accrue during the payment break and your loan term will be extended by 2 months.Take a two-month payment break at the start of your loan, if eligible. Please note, interest will accrue during the payment break and your loan term will be extended by 2 months.
              • You can choose which day of the month you’ll make your fixed monthly payment.You can choose which day of the month you’ll make your fixed monthly payment.

                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. 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.

                          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 when 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 stating your monthly loan repayments.

                            • This break is only available at the start of your loan.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.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.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 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, 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 Personal 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

                                      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.

                                            How do long term loans work?

                                            A long term loan is a loan that lets you make repayments over a long period of time. Many personal loans expect you to pay back the full amount over a period of 7 years or less. Tesco Bank Long Term Loans give you the chance to repay over up to 10 years.

                                            A long term loan can be useful when you need money upfront and want to keep your monthly payments as low as possible, as it lets you spread the cost over a longer period. You may end up paying more interest overall than you would with a short-term loan because even if your APR is low, you’ll be borrowing the money for longer.

                                              Is a 10-year loan right for me?

                                              A 10-year loan could be right for you if you're looking for lower monthly repayments and are confident of your financial future. Taking out a long term loan is a big commitment and a lot can change over the space of 10 years. You might switch job, get married, have a baby or be made redundant – if any of those things happened, would you still be able to afford repayments?

                                              Having a good think about how you might manage your monthly payments if something unexpected came up is a smart choice when it comes to long term loans.

                                                What are the advantages and disadvantages of a long term loan?

                                                The big advantages of a long term loan are:

                                                Lower monthly repayments - With a long term loan, you're splitting the cost of repayments over a longer period of time – and that means your monthly repayments are likely to be lower than they would be on a short-term loan.

                                                Lower interest rates - You may also be offered a lower interest rate for a long term loan, and you’ll have the same interest rate for the length of your loan, even if the market changes over the years.

                                                Build your credit score - Repaying a loan over a long period of time can give you the chance to improve your credit score and show that you can manage your finances.

                                                  The main disadvantages of a long term loan are:

                                                  A higher amount to repay - While you may be paying a lower amount every month, you're likely to end up paying more for your loan overall. This is because you're charged interest on the money you owe and with a long term loan, you owe the money for longer.

                                                  Hard to predict financial security - It can be tricky to look ahead and be confident about what is coming around the corner and with a long term loan, you need to know you’ll be able to afford the repayments over many years.

                                                    Is a long term loan cheaper than a short term loan?

                                                    Long term loans can sometimes be cheaper than short-term loans, but not always. You might end up with smaller monthly repayments because the amount of money you borrow will be paid back over a longer period. That said, you will also be charged interest on that money and the more years you have the loan for, the more interest you will be charged.

                                                    You can get an idea of how much you might end up paying back over a few different loan term lengths by using our loan calculator.

                                                      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.