Yes, you can make additional payments and you won’t be charged for doing this.
Your additional payment can either;
reduce your monthly repayments and keep your loan term the same, or
keep your monthly payments the same and reduce your loan term, which means you’ll pay less interest in the long run.
If you’re behind on your loan payments, or have taken a COVID-19 payment break, we’ll automatically use additional payments to reduce the term.
If your payments are up to date, we’ll automatically use overpayments to reduce your monthly payments and we’ll confirm your new repayments in writing.
If you’d prefer to keep your monthly repayment the same and reduce your term, please call us on 0345 600 6016* before making your payment. We can then automatically do this for future payments if that’s your preference.
Making an additional payment
If you’d like to pay more than your monthly repayment amount you can pay online via Faster Payment, debit card over the phone or send us a cheque.
To make a payment via Faster Payment online, use your Tesco Bank Loan sort code and account number. Your account details can be found on a loan statement or in your account overview within online banking.
For debit card payments, please call 0345 600 6016. Lines are open Monday to Friday 8am - 6pm, Saturday and Sunday 9am - 2pm. The debit card must be in your name and registered to your home address. We’re unable to accept payment by credit card.
Cheques should be made payable to ‘Tesco Bank’ and write your loan account number and sort code on the reverse. Post cheques to Tesco Bank, Loans PO Box 27014, Glasgow G2 9FE.
Calls may be recorded. *This number may be included as part of any inclusive call minutes provided by your phone operator.
Loan applications made before 11 June 2010
Any additional payments made will be applied to your loan and may reduce the total number of monthly payments on your loan. However, there is no interest benefit to making an additional payment to your loan. This means that the amount of interest you pay on your loan will not reduce as a result of this payment.