Long term loans

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 (See under Payment Break tab).

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.

A long term loan is a loan that lets you make repayments over a long period of time. Many personal loans expect you to pay back the full amount over a period of 7 years or less. Tesco Bank Long Term Loans give you the chance to repay over up to 10 years.

A long term loan can be useful when you need money upfront and want to keep your monthly payments as low as possible, as it lets you spread the cost over a longer period. You may end up paying more interest overall than you would with a short-term loan because even if your APR is low, you’ll be borrowing the money for longer.

A 10-year loan could be right for you if you're looking for lower monthly repayments and are confident of your financial future. Taking out a long term loan is a big commitment and a lot can change over the space of 10 years. You might switch job, get married, have a baby or be made redundant – if any of those things happened, would you still be able to afford repayments?

Having a good think about how you might manage your monthly payments if something unexpected came up is a smart choice when it comes to long term loans.

Lower monthly repayments - With a long term loan, you're splitting the cost of repayments over a longer period of time – and that means your monthly repayments are likely to be lower than they would be on a short-term loan.

Lower interest rates - You may also be offered a lower interest rate for a long term loan, and you’ll have the same interest rate for the length of your loan, even if the market changes over the years.

Build your credit score - Repaying a loan over a long period of time can give you the chance to improve your credit score and show that you can manage your finances.

A higher amount to repay - While you may be paying a lower amount every month, you're likely to end up paying more for your loan overall. This is because you're charged interest on the money you owe and with a long term loan, you owe the money for longer.

Hard to predict financial security - It can be tricky to look ahead and be confident about what is coming around the corner and with a long term loan, you need to know you’ll be able to afford the repayments over many years.

Long term loans can sometimes be cheaper than short-term loans, but not always. You might end up with smaller monthly repayments because the amount of money you borrow will be paid back over a longer period. That said, you will also be charged interest on that money and the more years you have the loan for, the more interest you will be charged.

You can get an idea of how much you might end up paying back over a few different loan term lengths by using our loan calculator.