We know everyone needs a personal loan at a stage in their life. Whether it’s debt consolidation, home renovation, car replacement, or a wedding ceremony, a personal loan would help you to sort your money. And Tesco Bank is one of the ideal options you would have to top up your finance when you need. That’s why we have written a short breakdown that will help to understand the features and policies of Tesco Bank Personal Loan. Let’s take a quick glance:
Features of Tesco Bank Personal Loans
Tesco offers personal loan ranges from £1,000 to £35,000 with flexible repayment terms of 1 to 10 years depending on the size and purpose of the loan. They provide unsecured personal loans with competitive interest rates. Plus, if you are a Tesco Bank member you can get a further discounted rate. They also offer their customers a two months break opportunity.
One of the biggest advantages of Tesco Bank Personal Loan is that they offer fixed-rate loans, so your monthly repayment remains the same throughout the loan period. However, the final interest rate depends on your credit score, financial circumstances, expenditure, and your income. Thus the representative APR may differ from the advertised representative APR.
Their minimum APR is 2.5% and the maximum is 25.5% which is still relatively lower than other competitive lenders. Though the rate may be higher in certain circumstances. The higher the credit score you have the lower will be your interest rate.
Let’s suppose a representative example. If you borrow an amount of £7,500 over 6 months with a representative rate of 3.0% based on an annual interest rate of 2.9595%. Your monthly repayment will be £134.63 with a total repayable amount of £8,077.80. So the total charges for the credit will be £577.8.
Requirements for getting a loan from Tesco Bank:
There are no hard and fast criteria to secure a loan from Tesco Bank. But still, there are some simple requirements that you need to fulfill for getting a loan.
- You must be aged between 18 and 75. You must be aged under 75 during your loan term.
- You must be a permanent UK resident or have been living in the UK for over three years.
- Must have a UK bank account or building society account that can pay the debt.
- You must be in full-time employment or self-employed for over two years.
- Most importantly you don’t have any history of bankruptcy or Country Court Judgement.
- Must have a good credit history.
How to Apply?
If you want to apply for a loan at Tesco Bank you can apply online directly on their site. They will carry out credit research to calculate a credit score based on the information you provide and the credit reference information. This will decide whether or not you are eligible for the loan or not. If you have a good or excellent credit score you will get instant approval and the amount your borrow will get transferred into your bank account. But if you don’t have a good credit score you may face difficulty in getting a loan from Tesco Bank.