Tesco Bank opened its doors in 1997. However, it was put under the full control of Tesco Plc. in 2008. It offers several financial products that include Tesco Bank Personal Loan, credit cards, loans, mortgage, car loans, savings products and current accounts. In addition, it offers travel, pet, car and home insurance in partnership various insurance providers.
Personal loan Products at Tesco Bank
Tesco Bank offers secured and unsecured loans. Applicants use these loans to fund home improvement, car purchases, holidays or education. It offers loans of between £1,000 and £35,000. These loans are payable between one and seven years.
What is the Interest Rate for a Tesco Bank Personal Loan?
A Tesco Bank personal loan is usually offered with a fixed interest. This means that the applicant will pay a fixed monthly repayment for the entire period of the loan. The Annual Percentage Rate starts at about 2.9% to a maximum of 34.5%. Its advertised rate is only offered to a few of the customers with a good credit score and low risk of default.
The lender checks on various areas when offering a Tesco Bank personal loans to the applicants. It evaluates the credit score, annual income, the purpose of the loan and the ability to pay the amount based on monthly expenditure. Therefore, interest rates differ from one person to the other.
Representative APR Example; if one applies for a loan of £10,000 to be paid in 48 months (4 years) at the lowest APR of 2.9%, he or she would like to make monthly payments of £220.73. The total amount payable would be £10,595.04, with the interest being £595.04.
What are the Basic Loan Eligibility Requirements?
Here are some of the requirements that applicants must fulfill to access the loan:
• They must be at least 18 years of age and not older than 74 years
• The applicant must have a regular income and not in a probationary period
• He or she must have lived in the UK for at least three years before making an application
• The applicant must have a current personal account with a UK bank
In addition to the above, the applicant would need the following:
• To provide the current account number along with bank sort code
• Information about monthly income after tax
• Information about store and credit card limits, balances and when the balances are due
• Any existing loans and payment amounts each month
• The current employer address if employed
• Addresses in the last three years
• Any mortgage or rent payments
Tesco Bank Personal Loan Application Process
One can apply for loan online through a postal form or over the phone. The information above will be asked during the application. The bank will go through the information and provide a customized loan offer. During the application, Tesco carries out a soft credit search, which does not leave a footprint in the credit report. If the applicant agrees to the terms of the loan, he or she will receive loan agreement documents, which he or she will sign. Once the process is completed, cash is sent to the applicant’s bank account within two days