A loan gives you the money you need upfront and lets you spread the cost of paying it back. So whether it's a special holiday, a car or a new kitchen, a personal loan can make it more affordable.
Loans are available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circ*mstances. Subject to status.
Tesco Bank Loans: PO Box 27014, Glasgow, G2 9FE.
We offer unsecured personal loans
This means that if we decide to lend you money, it won't be secured on your home, car or other assets. You can then spend this money on the things you need.
Available repayment periods
You can apply for a loan term from 12 to 120 months depending on the loan amount and purpose. Just remember that the maximum repayment period might be lower for certain loan purposes.
Borrow exactly what you need
We offer loans to cover costs big and small and you can be specific about the amount you need, down to the pound.
How interest is charged
The interest rate is fixed for the life of the loan.
At the beginning of the loan we work out the interest you will pay over the whole length of your loan and add this to your loan amount. We calculate your interest charge by applying interest at a monthly rate based on the APR to the balance of your loan, as reduced by your monthly repayments. We add this to the loan amount and then divide this total by the number of monthly repayments.
The loans calculator will give you an example of what it might cost you based on the loan amount and term you want. However, the interest rate we offer may be higher depending on your individual circ*mstances. The minimum rate that we offer is 6.1% APR and the maximum rate is 34.5% APR.
Representative example
|
| | Monthly repayments £386.05 | Length of agreement 60 months |
Total amount repayable £23,163.00 | | Fixed Annual Rate of Interest (nominal) 5.9358% |
How soon can I get my loan?
If you've been approved, you'll receive some important documents within five days, which you'll need to check, sign and return to us.
If you apply online, you’ll get an immediate decision and, if eligible, can digitally sign your loan agreement with us. We’ll then use Faster Payments to send the money directly to your bank account.
Once we're happy with the information you've sent, we'll fully approve your loan and pay the money into your bank account.
Take a payment break
Sometimes it can really take the pressure off if you don’t have to start repaying your loan straight away, especially if you’ve got extra expenses to cover.
So when you apply for a loan, you might be eligible to apply for a payment break before starting your monthly loan repayments.
- This break is only available at the start of your loan.
- If your application for this option is successful, then the first payment would be taken the third month after the issue of the loan.
- Interest will be charged during the payment break and your overall loan period will be extended by two months, which means that you will pay an extra two months' interest.
- Your offer documentation will explain the terms of the payment break, so please read everything carefully.
Your payment is made by monthly direct debit from the account the loan is paid into. Your first payment will be made one month after issue of the loan on the date you have chosen in your application.
You'll always know what you have to pay
All Tesco Bank loans are fixed rate. This means your monthly Direct Debit payments will be the same every month until your loan is paid off. Nice and simple.
What happens if a payment is late?
We'll charge £12 each time a loan payment is late and £12 when a default notice is issued.
Can I pay my loan back early?
Yes. But you will be charged up to two months' interest if you choose to settle your loan early.
Credit checks during application
We'll carry out a credit reference search when you apply for a loan and a credit score will be calculated based on the information you enter and your credit reference information. This will help us make a decision on whether or not we're able to lend to you. We'll then let you know the decision and what the status of your application is.
Who provides these loans?
Our loans are provided by Tesco Bank, PO Box 27014, Glasgow, G2 9FE.
What do we mean by Annual Percentage Rate (APR) and annual rate of interest?
The APR is the total cost of borrowing, as a percentage of the amount you owe, over a year. The APR is calculated from the annual rate of interest plus any upfront fees. It gives you a way to compare the cost of different loan and credit offers.
The annual rate of interest is the amount of interest that will be charged on your loan, as a percentage of the amount you owe, over a year.
FAQs
Generally, you'll need a good to excellent credit score — 670 or higher — to qualify for a $20,000 loan. The higher your credit score, the better your chances of qualifying for a loan and securing a lower interest rate.
Is it hard to get approved for a 20k loan? ›
You'll likely need a good to excellent credit score to qualify for a $20,000 personal loan without a cosigner.
What do I say to get a personal loan from a bank? ›
To get a better idea of what you may want to tell your lender, below are some of the most common reasons to get a personal loan:
- A Short-Term Unexpected Emergency Expense.
- To Consolidate Debt.
- A Large Purchase.
- Home Repair and Renovation.
- Covering Costs for Major Milestones and Goals.
- Paying for School.
- Buying Real Estate.
Example Monthly Payments on a $20,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 12 months | 15% | $1,805 |
| 24 months | 15% | $970 |
| 36 months | 15% | $693 |
| 48 months | 15% | $557 |
3 more rowsAug 31, 2021
$20,000 loans may be available to people with no credit or bad credit, these options likely will come with higher interest rates, fees, or even the need to provide collateral to get approved. If you don't have a strong credit history, lenders might consider you a risk and structure your loan terms with that in mind.
What credit score do I need for a $20,000 loan? ›
Requirements for a $20,000 Personal Loan
This means they'll want to see your credit score, income level and DTI ratio. Requirements vary by lender, but most lenders require borrowers to have a credit score in the good to excellent range — meaning a score of at least 670.
How much credit do you need for a 20k loan? ›
Check Your Credit Score.
However, when applying for a larger amount of $20,000 and up, you may need a higher score. A score of around 670 or more will increase your chances of being approved for a larger loan amount at the lowest rates available.
Which bank gives a loan easily? ›
With attractive interest rates, minimal documentation and speedy processing, Bank of Baroda Kenya offers among the best personal loans today.
Do I have to give a reason for a personal loan? ›
While most reasons won't stop you from obtaining a personal loan, you'll need to explain why you need the money you're borrowing. You can generally use the loan proceeds however you see fit, but some lenders have restrictions. Plus, the loan purpose could impact the loan terms you receive.
Do banks need a reason for a personal loan? ›
Lenders may want to know the purpose of a loan so they can assess the risk of lending. Also, some lenders have limitations on how the money can be used. Borrowers will also want to consider the purpose of a loan to make sure they apply for the right type of loan for their needs.
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
What is 5% interest on a $20,000 loan? ›
Loan amount
If you borrow $20,000 over five years with a 5 percent interest rate, you'll pay $2,645.48 in interest on an amortized schedule.
How to pay off a $20,000 loan fast? ›
5 Ways To Pay Off A Loan Early
- Make bi-weekly payments. Instead of making monthly payments toward your loan, submit half-payments every two weeks. ...
- Round up your monthly payments. ...
- Make one extra payment each year. ...
- Refinance. ...
- Boost your income and put all extra money toward the loan.
Easiest-to-get personal loans compared 2024
| Title | APR | Min. credit score |
|---|
| Avant | 9.95% to 35.99% | 580 |
| LendingClub | 9.57% to 35.99% | 600 |
| OneMain | 18% to 35.99% | Undisclosed |
| LendingPoint | 7.99% to 35.99% | 600 |
6 more rowsMar 28, 2024
Ask Someone To Co-Sign
Getting a personal loan with a co-signer that has a strong credit score and a solid income can boost your application. Your co-signer – ideally, a family member or close friend – will apply alongside you, and you'll both be responsible for repayment of the loan.
How do I check if I qualify for a loan? ›
Your credit score: Evaluating your 'creditworthiness' to see how much debt you have and how you've handled debt and repayments in the past. Your income: How much you earn will determine how much credit you can take on. Do you make enough money to repay your loan and still have enough left for other expenses?
How much is a $20000 loan for 5 years? ›
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
Is 20k a lot of student loans? ›
The average borrower takes 20 years to repay their student loan debt and accrues $26,000 in interest over 20 years at the rounded average interest rate of 6%. If those monthly payments look low compared to what most borrowers pay, it's because most borrowers carry a lot more than $20,000 in student loan debt.
Can I get a 20k loan with 750 credit score? ›
You should have a 640 or higher credit score in order to qualify for a $20,000 personal loan.
How much income do I need to qualify for a 200000 loan? ›
According to the 28/36 rule, your mortgage payment should not exceed 28% of your gross monthly income. Hence, assuming no other debt, you'd need a monthly income before taxes and deductions of at least $5,821, or an annual gross income of at least $70,000 to be eligible for the mortgage.
