Small 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.

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.

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.

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

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.

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.

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.

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.

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.

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

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.

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.

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.

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

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.

Find out more about some of the loan amounts available.

It's possible to get a small loan even if you have bad credit, although it may be more difficult. You can check your credit score before applying for a small loan to see if there is anything you can do to improve your rating. You can also use our simple and speedy eligibility checker to see how likely you're to be approved for a small loan with us. We'll carry out a ’soft check’ that won’t affect your credit rating but will let you know exactly how likely we are to give you a loan. Check your eligibility.

The biggest thing to think about when taking out any loan is whether you’ll be able to pay it back. A small loan may help you bridge any gaps in your budget. That said, with any loan you’ll be expected to pay interest on the money you borrow, so there is a cost to consider.

When you take out a loan, you’ll get a fixed interest rate for the amount of time it takes to pay it back. How much interest you’re charged will depend on things like the size of the loan and how long you expect to be paying it back for. Use our loan calculator to work out how much you could pay over the lifetime of your loan to see if it’s a smart choice for you.

When you're looking for a small amount of cash to make an important purchase or to consolidate existing debts, there are a few alternatives to think about. You might be able to arrange an overdraft for your bank account, which could have lower interest rates than a loan. Be sure to double check though, not all overdrafts are cheaper than loans.