Tesco Personal Loans Review 2022 – Forbes Advisor UK


Tesco Bank offers competitive interest rates on personal loans – particularly on borrowings between £7,500 and £25,000 – while repayment terms range from 12 months to 10 years.

Representative example

The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide to the cost of carrying a sale. Your personal offer may vary from the representative APR example.

You can borrow £10,000 over 60 months with monthly repayments of £180.37. The total reimbursable amount will be £10,822.20. Representing 3.20% APR, annual interest rate (fixed) 3.20% pa Credit available subject to status.


  • APR Competitive Rep (Fixed)
  • Two-month payment break available at start of loan (if eligible)
  • Clubcard membership could have a positive impact on your application

The inconvenients

  • Lower APRs offered by other providers
  • Longer loan terms limited to certain loan amounts
  • £12 late payment fee

APR representative

3.20% (fixed)


£1,000 to £35,000


12 months to 10 years


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What are the advantages ?

  • APR Competitive Rep (Fixed)
  • Two-month payment break available at start of loan (if eligible)
  • Tesco Clubcard membership could have a positive impact on your application

What are the disadvantages ?

  • Lower APRs offered by other providers
  • Maximum loan term limited to loans between £15,000 and £25,000
  • £12 late payment fee

Main characteristics

  • Representative APR of 3.2% (fixed) on loans between £7,500 and £25,000
  • Loans ranging from £1,000 to £35,000
  • Repayment terms between 12 months and 10 years

Will I be eligible?

To be considered for a loan from Tesco Bank you must have lived in the UK for at least three years and be between the ages of 18 and 74.

The lender also requires its customers to have regular income, such as a pension or salary.

If you are using the loan to consolidate other debts, you must be at least 22 years old.

Before you officially apply for a Tesco loan, you can use an eligibility checker to find out your chances of being accepted. This will not affect your credit score.

What more do I need to know?

Before choosing a loan provider, it’s important to compare different options on the market to make sure you get the best deal.

After selecting a lender, carefully check the terms and conditions of the loan. It’s a good idea to check if the loan comes with late fees and if you can pay it off early.

For example, Tesco Bank charges £12 for each late payment and allows customers to prepay the loan at two months’ interest. You can also make additional payments at any time during the term of the loan at no additional cost.

Once you have made eight consecutive loan payments, you can apply to borrow more. Tesco Bank only allows one loan per customer at a time, so this extra money is used to settle and close your existing account, with the rest transferred to you as a new loan.

If you have any questions that are not answered by the terms and conditions, you can contact Tesco Bank customer services on 0345 600 60.

When you apply for a loan from Tesco Bank online, you should receive an instant decision. Your application will either be approved, approved in principle, or rejected.

If approved, you will receive a credit agreement to sign, either virtually or by mail, depending on your preference. Once the bank receives your signed agreement, the loan will be deposited into a bank account of your choice within 48 hours.

If your application is approved in principle, Tesco Bank will contact you to request further information. It may take up to 10 days to process this information, after which you will get a final decision.

Is a Tesco loan right for me?

If you want to borrow a lump sum over a fixed period and repay it in fixed monthly installments, Tesco Bank is a solid option.

Borrowing between £7,500 and £25,000 offers the most competitive APR of 3.2% (fixed). However, keep in mind that this is a representative figure, which means it may vary depending on your credit score and personal circumstances.

If you are considering using a Tesco Bank loan to consolidate other debts, make sure this is the best solution.

What are my alternatives?

If you only need to borrow a relatively small amount – up to around £1,200 – you can make the purchase using a credit card with an introductory interest rate of 0%.

This means you can avoid paying interest on your loan, as long as you can pay off the credit card balance in full before the 0% promotional period expires. The length of this promotional period varies from card to card and you may not be offered the advertised duration.

As with any type of loan, remember to compare a wide range of offers before committing to a loan provider.

An eligibility checker will perform a “simplified search” on your credit history, which estimates the likelihood of you being accepted for each loan without leaving a mark on your credit report.


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