With unsecured personal loans becoming more popular than ever in the UK, there
are quite a lot of loan companies that offer these loans to borrowers. Today, tenants and non-homeowners find it easy to arrange for funds when they really need it, thanks to the various loan options that are available to them. One such company offering unsecured loans is Tesco which has made quite a name for itself in this sector.
Tesco loans introduced
Tesco loans have been around for quite some time and thousands of borrowers have taken advantage of the unsecured loans offered by the company. The
loans that are offered by the company have several specific advantages. The company offers unsecured loans from GBP 7500 to 14,999. one of the best things about these loans is that there are no set up charges that the borrowers would have to pay, unlike several other companies that charge high set up fees.
Tesco offers a typical APR of 7.7% which is considered to be quite a good deal for unsecured loans. Of course, the APR would vary according to the individual borrower and would depend on quite a lot of factors. However, the low interest rates are still quite attractive for the borrowers. Once you do take the loan, you would be expected to pay monthly instalments which are fixed through the loan term. The main benefits of the Tesco loan is that it offers a fixed rate of interest. This means that you would not have to worry about any interest changes in the market.
Another great benefit is that you would be able to choose your repayment date. You can make the monthly payments on the date that is chosen by you so that you would have more convenience. Tesco also offers a payment break option to the borrowers at the beginning of the loan if they require. If you opt for it, you would not have to make any payments at all for three months at the start of the loan term. The term can also be extended for another two months, however, the interest rate would be chargeable for the entire term.
Applying for a Tesco loan
There are a few eligibility criteria that you would have to fulfil in order to get an unsecured loan from Tesco. You would have to be minimum 18 and maximum 74 years of age and would need to have a regular income of at least GBP 10,000 annually. You must have a valid building society or bank account with a decent credit history. You should have a permanent address in UK. The term offered is maximum 5 years on the loan.
Although Tesco does not offer any secured loans, loans of amount GBP 15,000 and above are only offered to homeowners. The funds that you get can be used for debt consolidation, car repair or replacement, education or for any other purpose.
Loan amount: £10,039
Monthly payment: £225.01
Term of loan: 52 months
Total amount to be repayable: £11,700.52