Tesco Home Improvement Loan
Good:
Very affordable loan with a really helpful customer service base
Bad:
They may quote you one APR and when the loan agreement arrives it may say something else
Verdict:
Loan for homeowners with a really good credit history - a lot of happy customers because they got their money at a low interest rate even though it took a bit longer than expected
Offering loans from £7,500 to £14,999 over 1-10 year period, Tesco have specifically aimed this loan at customers who are looking to improve their homes. The interest rate for Tesco is really competitive on their larger loans, however, bear in mind they do not accept customers with any type of bad credit history. The 2 month payment holiday Tesco offer at the start of the loan can be great for people who are looking to improve their property as it gives you a financial break whilst spending out on your improvements (interest still applies).
Tesco offer two methods of applying for their loans, the most efficient way is using their online application service. However if you would rather talk to someone about it you can call their UK based call centres. Once you have applied and completed the online application form, they will give you an instant provisional decision. If you are provisionally accepted, they will further assess your application and post your loan agreement out. You may have to send extra documentation to back your application up such as bank statements or wage slips. Return the documents back to Tesco and it can take up to 3 working days to make a final decision on your loan. They will then send you a letter to confirm everything and the funds will be in your account in 3 working days.
Bear in mind Tesco do not accept any customers with Defaults or CCJs. There does seem to be an issue regarding customer service with documents and agreements seemingly going missing. Internal communication seems well-known to be poor, judging from customer reviews on the internet. However, the people that have received their loans have on the whole said they are very happy with the service. Make sure you make your repayments on time as the late payment charges are a bit more expensive than other lenders. Also, double check the interest rate they may have written on the loan agreement - it may be different to what you were originally quoted.
Loan Calculator (Representative 6.1%APR)
Loan Amount £
Loan Term months
Monthly Repayment
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After applying for a Tesco loan at the rate of 7.3%, we phoned them for a loan progress and we were told it was approved in principle and the paperwork had been sent out. When it arrived the APR was 9.1%! Which equated to £60 per month more than we originally thought. I felt totally misled and decided not to take the loan.
I applied for a loan for some bits and bobs around the house and I received a favourable decision in a document the next day. I changed a couple of details and they offered a better APR! They wanted to verify my passports to confirm my visa status so I sent that to them over next day delivery. Over all, it took just 4 working days. Money and documents returned! One of the shortest application cycles I've seen.
I have been waiting 33 days now for my documents! The hold up? Who knows but Tesco keep telling me they have sent out the paperwork, I haven't received it to date. They took so long the quote for my extension is no longer available.
I recently applied for a home improvement loan with Tesco Personal Finance. I gave all my details over the phone and I was accepted in principle. Then I started waiting... It took a week for the paperwork to arrive and I had to send original payslips and three months bank statements along with the signed credit agreement. The final decision was to take another 48 hours. I have now been declined as apparently I've got too many outgoings. I'm still awaiting the return of my paperwork.
We needed to borrow some money so I had a look around the net and came across a few companies with their online calculator. Tesco came out on top without fail. They worked on the loan application very quickly (most was done over the internet and came readily printed. Within two weeks of sending wage and bank statements, we were accepted. Thumbs up for Tesco.
My husband and I needed a loan to help decorate our new home. I was recommended Tesco and apprehensively tried them. I applied online, which was straightforward and easy. I was called by Tesco confirming my application was agreed in principle. 4 days later I received a confirmation pack, I signed the forms and sent my most recent bank statement as request. 3 days later I had the money.
Loans up to £14,999 - 10 years
Express Service - up to 5 working days
Non-express - up to 10 working days
- You must be between the ages of 18 and 74
- You must have a good credit history
- You need: bank details, details of your regular monthly income after tax, your credit and store card limits, current balances and time held, details of your other monthly outgoing expenses, 3 years address details and your current employers details
- You must have been living in the UK for one year or longer and have a permanent address
- You must be a homeowner
- You must have a bank/building society account with Direct Debit facilities
- You must be in full-time, part-time or self-employment earning over £10,000 per year
- Courier fee to receive your documents quicker - £50.00
- Payment received late - £30.00
- Default notice - £12.00
- Each time a loan payment is not made on time - £12
- Two month's additional interest
