Long term loans

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’.

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 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.

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.

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.

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.

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.

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.