Tesco is Britain's biggest supermarket group. Tesco loans are part of a range of products offered by Tesco Personal Finance. You may apply for Tesco loans for any amount between £3,000-£25,000 and for almost any purpose. You may opt to repay Tesco loans over any period between 12 months and 10 years.

Tesco loans operate on a risk-based pricing policy. This means the quoted typical interest rate of 6.3% APR will be offered to a majority of those people who apply for Tesco loans although some may be rejected and others may be offered a loan but at a higher rate of interest.

The rate of interest offered by Tesco loans may also vary depending on how much you wish to borrow and over what period you intend to repay your loan. Tesco Personal Finance has a set of interest rate bands and the advertised rate is that for a loan of £7,500 over five years. Tesco loans are also available with optional payment protection.

Tesco Loan repayments
One of the potential benefits offered by Tesco loans is the ability to put off repaying your loan! You may stipulate when you make repayments although your first repayment should be between 15 and 45 days after you receive the loan. However, there is an exception to this. Unlike loans offered by many other loan providers, Tesco loans are made more attractive to potential borrowers by the fact that they include the offer of a payment holiday.

In fact, Tesco loans come with the option of a two month repayment break right at the start of your loan. This payment holiday would actually mean that you could arrange your loan so that you make no repayments for three full months from the date you receive the funds from Tesco loans.

However, you must remember that interest will be mounting up on your debt and delaying your repayments will make your loan more expensive.

When applying for Tesco loans, the interest rate you will be offered will depend on a credit reference search and the credit score that Tesco Personal Finance work out from your credit records. Tesco will aim to tell you by phone whether you've got a loan but will, in any case, follow up with written confirmation. Assuming your loan is approved, the loan amount can be in your bank account within three days of you receiving the written confirmation.

If you application for Tesco loans is declined, Tesco say you can always apply again but you must wait three months before making another application. Tesco loans' headline advertised APR is an attractive rate but you may be able to do better elsewhere depending on how much you want to borrow and for how long. It always makes sense to shop around before applying for personal loans.

Tesco loans may offer the right loan for you and your circumstances but there may be other personal loans which may offer more competitive rates of interest. Moneyextra's loans comparison tool allows you to compare the rates on offer from more than 50 personal loan providers.