Tesco review

Updated September 28, 2026 · BorrowCue Editorial Team · Facts checked September 26, 2026

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Our verdict

Tesco Bank lends £3,000 to £35,000 at fixed rates of 6.2% to 34.5%, with free early repayment and money in the account the same day you apply. It suits UK residents who bank with Tesco and want a fixed monthly payment they can clear early without a fee.

Key facts

Best for
Borrowers wanting a fixed-rate loan with no early repayment charge.
APR
6.2% to 34.5% (Source, checked September 26, 2026)
Loan amount
£3,000 to £35,000 (Source, checked September 26, 2026)
Term
12 to 120 months (Source, checked September 26, 2026)
Credit check
Hard (Source, checked September 26, 2026)
Funding time
Funds in account within 24 hours (Source, checked September 26, 2026)
Representative example
Representative 6.6% APR on £10,000 over 5 years, fixed rate 6.4084% nominal, 60 monthly payments of £195.23, total repayable £11,713.80 (Source, checked September 26, 2026)
Rate type
Fixed (Source, checked September 26, 2026)
Lender type
Direct lender (Source, checked September 26, 2026)
Free early repayment
Yes (Source, checked September 26, 2026)
Eligibility
UK resident aged 18 to 74, in employment or regular income, lived in the UK for at least 3 years, holds a UK personal current account (Source, checked September 26, 2026)
Loan types
Personal, Debt-consolidation, Car (Source, checked September 26, 2026)
Use cases
Home-improvement (Source, checked September 26, 2026)
Legal entity
Barclays Bank UK PLC (Tesco Bank is a trading name of Barclays Bank UK PLC) (Source, checked September 26, 2026)
Headquarters
United Kingdom (Source, checked September 26, 2026)
Founded
1997 (Source, checked September 26, 2026)
Support channels
Phone, Email, Help-centre (Source, checked September 26, 2026)
Pricing model
Fixed rate
Features
Same-day funding
Official website
tescobank.com

Apps and profiles

Get the app
App StoreGoogle Play
Elsewhere
WikidataWikipediaLinkedInXfacebook.com

Pros and cons

Pros

  • Fixed rates only, so the monthly payment holds for the whole term
  • Free early repayment, so clearing the loan sooner costs nothing extra
  • Money lands in the account the same day, listed among the features
  • A UK current account and steady income are all you need to apply

Cons

  • The top rate of 6.2% to 34.5% is high, so credit history drives what you pay
  • You must hold a UK personal current account to qualify
  • Applications run a hard credit search, which leaves a full mark on your file
Tesco

Ready to try Tesco?

Scored 9.3 / 10 by BorrowCue.

See alternatives

Who it suits

  • Existing Tesco Bank customers who want the balance in their everyday account
  • Borrowers consolidating debt or funding home improvements on a fixed rate
  • Anyone likely to pay the loan off early without a charge

Who should look elsewhere

  • Monzo Flex, if you would rather hold the loan with an app based lender and accept its rate range of 10% to 23%
  • Cashspace, if a different market suits you better
  • Borrowers without steady income, since employment or regular income is required

The company behind it

Tesco Bank is a trading name of Barclays Bank UK PLC, so the lender behind the loan is a UK bank rather than a broker or marketplace. It is headquartered in the UK and was founded in 1997. Support runs through phone, email and help centre, so you can pick up the phone, send an email or read the help centre. The bank is authorised by the Financial Conduct Authority and supervised by the Prudential Regulation Authority.

How Tesco compares

Where Tesco is available

Available
United Kingdom
Licence in United Kingdom
Financial Conduct Authority, checked September 26, 2026
Licence in United Kingdom
Prudential Regulation Authority, checked September 26, 2026

Countries from the brand (Source, checked September 26, 2026)

Frequently asked questions

What rate will I pay on a Tesco Bank loan?+

Pricing depends on your credit profile. The full range runs 6.2% to 34.5%, so the top of that scale is costly if your file is thin. The rate is fixed for the whole term, which means the monthly payment does not move once the loan starts.

How much can I borrow and for how long?+

Loans run from £3,000 to £35,000 and can be repaid over 12 to 120. The same range covers personal, debt consolidation and car borrowing, plus home improvement projects, so the figures stay the same whatever you spend the money on.

How quickly do I get the money?+

Same-day funding is listed among the features, and the stated funding time is Funds in account within 24 hours. In practice that means you apply through your current account rather than visiting a branch, and the money arrives in that account.

Can I repay the loan early without a charge?+

Yes. Free early repayment is offered, so clearing all or part of the balance ahead of schedule costs nothing extra. That makes it worth checking your rate against a similar loan that charges for early settlement.

Who can apply?+

You need to be a UK resident within the stated age range, in employment or have regular income, and have lived in the UK for at least a few years. A UK personal current account is also required, so the loan is aimed at existing current account customers.

What credit check do I face?+

Applications carry a hard credit search, which is recorded on your file and can affect other applications. Unlike a soft prequalification check, a hard search counts, so it is worth checking your rate before applying elsewhere first.

Is my money protected and who regulates the lender?+

Tesco Bank is a trading name of Barclays Bank UK PLC, a UK bank. It is authorised by the Financial Conduct Authority and supervised by the Prudential Regulation Authority, so deposits sit with an authorised UK bank rather than a comparison site.

How do I get help once I have a loan?+

Support runs through phone, email and help centre, giving you phone, email and a help centre. There is no chat or community option, so if you want to work things out in writing, the help centre articles and email are the routes available.

Sources

  • linkedin.com/company/tesco-bank checked September 26, 2026

    Backs: Headquarters

    “Headquarters Edinburgh, Scotland ... 2 South Gyle Crescent, Edinburgh, Scotland EH12 9FQ, GB”

  • tescobank.com/corporate checked September 26, 2026

    Backs: Founded

    “We began life in 1997”

  • tescobank.com/help/contact-us checked September 26, 2026

    Backs: Support channels

    “Our friendly UK-based customer service team are here to answer your questions ... Loans customer service 0345 600 6016 ... forward your suspicious email to us at phishing@tescobank.com”

  • tescobank.com/help/faqs/loans checked September 26, 2026

    Backs: Credit check, Eligibility, Free early repayment

    “When you apply for a loan, a credit reference agency search will be carried out”

  • tescobank.com/loans checked September 26, 2026

    Backs: Loan amount, APR, Features, Funding time, Lender type, Loan types, Pricing model, Rate type, Representative example, Term, Use cases

    “Amounts available to borrow from £3,000 to £35,000”

  • tescobank.com/transfer-scheme checked September 26, 2026

    Backs: Legal entity, Licences

    “Tesco Bank is a trading name of Barclays Bank UK PLC. Registered in England No. 9740322.”

Compiled from 6 source pages, checked September 26, 2026. We did not open an account.

Not confirmed yet: Arrangement fee.

Tesco

Tesco

Borrowers wanting a fixed-rate loan with no early repayment charge.

9.3/10See alternatives

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