Holiday loan

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 circumstances. Subject to status. The maximum APR you could receive is 34.5% APR.

Tesco Bank Loans: PO Box 27014, Glasgow, G2 9FE.

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.

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.

We offer loans to cover costs big and small and you can be specific about the amount you need, down to the pound.

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 circumstances.

Barclays will continue to use the Tesco Bank brand on all existing Tesco Bank banking products through a long-term strategic partnership with Tesco. If your application is successful, there'll be no immediate changes to how you use and manage your account on a day-to-day basis.

To find out more and view a range of helpful documents just go to tescobank.com/transfer-scheme

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.

Sometimes it can really take the pressure off when 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 stating your monthly loan repayments.

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, unless you apply for an initial payment break,

All Tesco Bank Personal 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.

We'll charge £12 each time a loan payment is late and £12 when a default notice is issued.

Yes, you can do this at any time at no extra cost. It may help pay off your loan faster, reducing the amount of interest you pay which would save you money overall. You can learn all about what this means for your loan on our page about additional payments.

You can do this at any time which could save you money on interest charges. Remember to factor in a two-month interest fee when you settle early though. For more on early settlement figures visit our page on paying your loan off early.

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.

Our loans are provided by Tesco Bank, PO Box 27014, Glasgow, G2 9FE.

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.

Holiday loans could be a helpful way to pay for a special holiday even if you don’t have enough money in your savings to cover the cost. They are unsecured personal loans that let you spread the cost of your trip, giving you money upfront and letting you pay it back in monthly instalments.

When you take out a Tesco Bank personal loan to pay for your holiday, you’ll be able to choose how long you’d like your loan to last. Our personal loans can be paid back over one to five years, depending on the amount you are borrowing. Tesco Bank personal loans are fixed rate, so you’ll be able to see exactly how much you’ll owe each month and how much the loan will cost overall.

Holiday loans work like any other unsecured personal loan. You can apply for a loan for the amount you need to pay for your holiday, or part of your holiday, and choose how long you’d like to pay it back. If you’re approved for a Tesco Bank personal loan, we’ll send the money to your account within a few days. You’ll then pay the loan back with interest in monthly instalments until the full amount has been repaid. While a personal loan could give you money in the bank for your planned big purchase, you should make sure you’ve carefully reviewed your finances and know how you’ll pay it back before you apply. 

You’ll also have the option of applying for a payment break when you take out a holiday loan. This means you won’t have to start repaying your loan right away, instead your payments won’t start until the third month of your loan. Two additional months will be added on to the end of your loan term and you will be charged interest for the full length of your loan.

A holiday loan could be a way to borrow money upfront when you’re a little short for that holiday of a lifetime. Alternative options might include using your savings if you have some – which means you won’t have to pay any interest, or thinking about putting some or all of your holiday expenses on a credit card.  

A credit card could be a good option if you think you’ll be able to pay back the cost of your borrowing very quickly, especially if you’re able to take out a 0% interest credit card. This could give you enough time to pay back your holiday costs before you need to pay interest. That said, if you don’t manage to pay the money back before the 0% interest period ends, the rates are likely to be higher than the ones on a personal loan.