Tesco Bank Personal Loan

The bank was formed as part of a 50:50 joint venture between The Royal Bank of

Tesco is offering loans from £7,500 at 5.9% APR if you have a Tesco Clubcard. Non Clubcard holders will get a rate of 6.3%. You can borrow up to £35,000 with varying terms (up to 10 years). Loans of £7,500 can only be taken over a maximum five year term.

Borrowers can make overpayments, but full repayment is subject to early repayment charges.

Pros

  • Competitive rates
  • Can make overpayments
  • Two month payment holiday option at the start

Cons

  • ERCs apply
  • Higher rate if you don’t have a Clubcard

Representative Example

If you borrow £10,000 over 60 months with monthly repayments of £192.15. Total amount repayable will be £11,529. Representative 5.9% APR, annual interest rate (fixed) 5.9% p.a. Credit available subject to status.