For a simple and easy understanding of Tesco bank personal loans, let’s assume you need £15,000 personal loan. And you apply with Tesco bank for Personal Loan for a period of 5 years. You need to pay £269.26 on monthly basis for 60 months, together with interest (which is 3% example base) and principal amount. However rate of interest charged on loan may be higher; it depends on your individual financial circumstances and credit history. Rate of interest charge will vary depending on your loan period and amount. Which rate of interest would be charged on your loan amount will be calculated before the start of contract (Explained Below). This Means you would know, the rate of interest charged on your loan amount before the start of the contract.
If you want to check how it applies to your required amount you can click here Tesco bank loan calculator. The total amount of long could be range from £1000 to £35000 and could for the period ranging from 1 to 7 years.
Finance needs and Tesco bank personal loan
Money is something which a person needs at every moment of his life .some time individual need finance to overcome emergency financial needs. And sometimes he needs finance to make their dream come true. Sometimes a person wants to travel to the desired location but lacks finance. A small business owner could be facing cash flows problem and looking for finance. Can be a person who needs finance to buy a new car or replace the existing one. All individuals have their different needs in term of finance and they lack in finance accordingly. Tesco bank personal loan scheme may help and provide finance to individual between the ages of 18 to 74.
Tesco bank personal loans for various purposes
Tesco Bank Personal Loan highlighted various categories and proposes of loan for you to easily select the category while applying. These all category comes under the umbrella of Tesco Bank personal loans which are set by bank Tesco and includes:
- Home Improvements
- Setting up home
- other vehicle
- Refinancing debit
While applying for personal loan you can select from these categories as purpose of loan. Don’t worry Tesco bank do not limit you to only these categories but you can select other if your needs do not fall under these category. If you need loan for emergency unexpected health expenses you can chose other as reason of loan. Or you need finance to fund your child study expenses then you can apply for loan with Tesco. These categories are actually purpose of loan amount which an individual is seeking .you can select more than one purpose or categories while apply for loan and there is no limit.
Further we can explain this in easy way by continuing above example let’s say you need £15000 loan in total. And you have two purposes to spend this amount which includes £10000 on Redecorating the home and £5000 on Furniture then you can select two categories while Appling and there is no limit or condition to selection only one category for one application. Also same in case if you have other reason than Tesco Bank given categories you can chose other. And some time you can chose specified categories and other together as reason/purpose of loan. Basically these categories are designed to make the application process easy and time saving for the borrowers.
APR charged variation depending on the amount and period of the loan
With this heading first question that comes in mind of a common individual is what is APR.
APR (annual percentage rate) APR is the actual rate charged on the loan amount and includes the impact of other loan associated cost. Other associated costs best example would be the upfront fee charged by banks on the loan amount.
APR VS Annual Rate of interest :Annual rate of interest is the rate showing only the interest charged on your loan and not including impact of loan related other fees. But APR take into account other related fees and then give actual rate that would be charged on loan. That’s when you are looking for loan and comparing two different banks loan you have to compare two banks APR.
Tesco Bank personal scheme highlighted that amounts of loans and period taken would change and if we come to know that. If loan taken is up to £25000 for the period up to and less than 36 months then minimum APR would be 2.9%. If loan amount remain same up to £25000 but period of loan fall in between 36 to 60 months, minimum APR would be 3.0%. If loan amount remain same up to £25000 and period exceed from 60 months minimum APR will be 3.80%.
Now if loan amount increase from £25000 to Allowed Amount of £35000 and period remain less than 36 months then would be 6% minimum. If loan remains in-between £25000 to £35000 and period fall in between 36 to 60 months, APR would be 6.6% minimum. If loan remains in-between £25000 to £35000 and period exceed from 60 months, APR will be 7.9% minimum. also remember that Tesco Bank personal loan scheme allow loan for the period up to 84 month (7 year) maximum.
Tesco bank personal loan scheme gives borrower a choice to apply online. If borrower processes loan application online, it will give an immediate decision about loan approval or rejection or further documents required. If loan is approved agreement is sent to borrower for review and sign also bank gives the option to sign digitally. After contract signing Tesco bank transfer the amount into borrower account within 48 hours. You can check more detail here on how long it will take to get you loan.
Take a payment Break in start
Tesco bank personal loan gives option to borrower to start repayment after two month of start of contract. This payment would be only available in the start. Be mindful if you chose repayment starting after two months then interest will be charge for these two months.
Early Settlement Option
Tesco bank’s personal loan scheme allows the borrower to repay the balanced loan amount early. The borrower has to pay two months interest on the balance amount.
Advantage For Tesco Clubcard Member
Tesco bank mentioned that Tesco Clubcard members would get benefit in credit score and hence this would reduce the cost interest rate charge on the loan. Please carefully read the terms and conditions during processing the application for a personal loan in Tesco. If you want to compare the personal loans with other banks you can click here Sainsbury bank personal loan
Haley Hayward is an experienced writer at gblogo.com, where she’s credited with more than 200 articles covering everything from entrepreneurial stories to mental health at work.
She also oversees the Comment&Questions, which poses important admission questions to experts in the field, and regularly hosts webinars on various aspects of the business school experience.
Prior to joining gblogo.com, Haley honed her skills as a freelance writer, tackling a wide array of topics from petcare to car maintenance.
Haley holds a Master’s degree in English Literature from the University of Edinburgh, Scotland.