Make additional payments towards your loan
All about making extra payments to your loan and how to do it
If you're looking to pay off your loan in full and close your account early, you can find out more about early settlement figures here.
Yes, you can make an additional payment at any time during your loan term at no extra cost. If your account is in arrears though, any payments will go towards paying this off first.
When you make an overpayment it goes towards reducing the length of time you are borrowing for (unless you’ve asked us otherwise). This means there’s less interest to be charged, which means you could save money overall.
The amount you could save is unique to your loan and will vary depending on how many payments you have left. We'll send you a letter within seven working days of making your payment, letting you know about any interest you've saved, your new balance and the term remaining.
- Bank transfer – pay straight from your bank to your loan using your Tesco Bank loan account details.
- Loan payment portal – this lets you make fast, simple loan payments online.
- Standing order – set up a standing order through your bank with your loan account details for regular overpayments.
- By cheque - make it payable to ‘Tesco Bank’ with your loan account details written on the back. Please post cheques to Tesco Bank, Loans PO Box 27014, Glasgow G2 9FE.
If you’d like to make a payment to your loan from an account that is not in your name or address, you can only do this by bank transfer or cheque.
No, but remember you’ll also pay your usual monthly Direct Debit amount that month.
We'll automatically reduce the term of your loan. So you could:
- Pay off your loan fasterPay off your loan faster
- Save money on interest, which would save you money overallSave money on interest, which would save you money overall
If you’d like your overpayment to reduce the amount you pay each month instead, you’ll need to give us a call so we can set this up for you. But keep in mind:
- You usually save more on interest by reducing your loan termYou usually save more on interest by reducing your loan term
- Your payment will reduce for your next payment cycle. This means your next Direct Debit payment will stay the same, or your next two payments will stay the same if your payment is due in the next five days.Your payment will reduce for your next payment cycle. This means your next Direct Debit payment will stay the same, or your next two payments will stay the same if your payment is due in the next five days.
The amount you could save is unique to your loan and will vary depending on how many payments you have left. We'll send you a letter within seven working days of making your payment, letting you know about any interest you've saved, your new balance and the term remaining.
It's important we have your correct address so we can get this letter to you. If you think it might be out of date update your personal details as soon as possible.
You can find out your current loan balance by logging in to Online Banking or our Mobile App. Your loan amount will be shown on the Online Banking Overview and your Account overview. You can also give us a call to find out.
No, but if you'd like to pay more every month you could:
- Set up a recurring standing order from your bank to your loan account - you'll need your loan account details to do this
- Make payments as often as you like using our usual payment methods
You don't have to pay off your delayed payments within your original loan term. We’ll automatically extend your loan term by the number of months needed to cover your delayed payments at no extra cost.
If you do want to make up these payments, you can make additional payments to your loan through the usual payment methods. We’ll use these payments to reduce your loan term extension.
You can check how much you have left in delayed payments by looking at any letters or emails we sent you about your payment break, or simply give a us a call.
If you’ve missed your loan payment by less than 14 days and usually pay by Direct Debit, we’ll automatically attempt to take the payment again within 10-14 days. If you'd like to make up your payment before this time you should call us so we can stop your Direct Debit from trying to go through again.
If your loan payment is missed by more than 14 days, then you can use the usual payment methods to make it up.
Don’t forget if you're struggling in any way with your payments, we're here to help. Take a look at our page on financial difficulty to see what we can do to help you.