Tesco isn’t just your go-to supermarket—it’s also a trusted lender in the UK. Through Tesco Bank, customers can apply for personal loans with fixed interest rates, flexible terms, and the added convenience of online servicing. Whether you’re consolidating debt, funding a home project, or making a large purchase, Tesco loans offer a reputable and competitive borrowing solution.
What Are Tesco Loans?
Tesco loans are unsecured personal loans offered by Tesco Bank, available to both new and existing customers. These loans are:
- Available from £1,000 to £35,000
- Repayable over 1 to 10 years
- Fixed interest rate for the full term
How Do Tesco Loans Work?
Once approved, Tesco transfers the funds directly to your bank account—usually within 24 to 48 hours. You then repay the loan in monthly instalments, with the same fixed amount due each month.
Tesco Loans Interest Rates Overview
Tesco offers representative APRs from as low as 6.1%, but rates vary depending on:
- Loan amount
- Loan term
- Your credit history
For instance, loans between £7,500 and £15,000 often qualify for the lowest APR.
Eligibility Criteria for Tesco Loans
To apply, you must:
- Be at least 18 years old
- Be a UK resident
- Have a regular income
- Hold a valid UK bank account
Clubcard holders may have an edge when it comes to better rates.
Required Documents for Application
When applying online, you’ll need:
- Proof of identity (passport or driving licence)
- Employment details
- Address history (last 3 years)
- Income and expenditure information
Tesco may run a soft credit check initially, followed by a full one before approval.
Key Features of Tesco Loans
| Feature | Details |
|---|---|
| Loan Amount | £1,000 – £35,000 |
| Loan Term | 1 – 10 years |
| Fixed APR | From 6.1% |
| No Arrangement Fee | Yes |
| Clubcard Benefits | Exclusive rates may apply |
| Repayment Holiday | Sometimes offered at start (optional) |
Pros and Cons of Borrowing from Tesco Bank
Pros:
- Trusted UK brand
- Fast online application
- Clubcard discounts
- No hidden fees
Cons:
- Rates may vary significantly
- Strict credit score requirements
- Not suitable for self-employed with unstable income
Loan Terms and Repayment Options
Tesco allows early repayment (in full or part), though a settlement fee of up to 58 days’ interest may apply. You can manage everything online or via mobile app.
Tesco Clubcard Holders: Extra Benefits
If you’re a Tesco Clubcard member, you may:
- Qualify for lower interest rates
- Receive personalized offers
- Get quicker approval (in some cases)
Credit Score Requirements
Although Tesco doesn’t publish a minimum score, successful applicants typically have:
- A good credit score (670+)
- Low credit utilization
- No recent defaults or CCJs
How to Apply for a Tesco Loan
- Visit the official Tesco Bank Loans page
- Use the loan calculator to estimate repayments
- Complete the online form
- Upload required documents
- Wait for approval (usually within 24 hours)
How Tesco Compares to Other UK Lenders
| Lender | Representative APR | Max Loan Term | Highlights |
|---|---|---|---|
| Tesco Bank | From 6.1% | 10 years | Clubcard perks, no setup fees |
| NatWest | From 6.9% | 7 years | Pre-existing customer offers |
| Barclays | From 6.5% | 5 years | Fast approval |
| Zopa | From 7.5% | 7 years | Great for debt consolidation |
Common Loan Uses: From Cars to Home Improvement
Tesco loans can be used for:
- Buying a new or used car
- Renovating your home
- Debt consolidation
- Funding education or weddings
- Large purchases like appliances or furniture
Customer Reviews and Ratings
According to independent review platforms like Trustpilot, Tesco Bank scores:
- ⭐⭐⭐⭐ (4.2/5 average rating)
- Customers praise the quick process and clarity of terms
- Some complaints about rate changes post soft check
Frequently Asked Questions (FAQs)
1. Is Tesco Bank safe for loans?
Yes, Tesco Bank is regulated by the Financial Conduct Authority (FCA) and deposits are protected by the FSCS.
2. Can I apply if I don’t have a Tesco Clubcard?
Absolutely. A Clubcard isn’t required, though it may offer lower rates.
3. How quickly will I receive the funds?
Typically, within 24–48 hours after approval.
4. Are there any fees?
Tesco loans have no setup fees, but early settlement fees may apply.
5. Can I repay early?
Yes, you can make partial or full early repayments, though interest charges may apply.
6. Do they accept joint applications?
No. Tesco loans are for individual applicants only at the moment.
Conclusion
Tesco loans provide a trustworthy, fast, and transparent borrowing experience for UK residents. With competitive rates—especially for Clubcard members—and a strong online application process, Tesco is a smart option for personal financing needs. As always, compare your options, check your credit score, and read the fine print before signing.