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Loans

Can I make additional payments to my loan?

Yes, you can make additional payments to your loan. How you do this depends on when you took out your loan.
Loan applications made on or after 11 June 2010
You can choose for your additional payment to be applied in one of two ways:

  • Reduce your monthly payment and keep the term of your loan the same, or
  • Keep your monthly payment the same and reduce the term of your loan.

Both options will give you an interest rebate, which means you will pay less interest overall on your loan, but you will get a greater interest rebate with Option 2. Please call us on 0345 600 6016* to tell us which option you prefer before making your payment. If you want it to be applied in the same way every time you make an additional payment, we can leave a note on your file so you don't have to call us every time you make a payment.

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.

Please note, that for all cases, if your account is in arrears, we will use any extra money you pay to clear your arrears first.

Making a payment
You can make your early settlement payment in the following ways:

  • Online Transfers via Faster Payment using your sort code and account number. Your account details can be found on a loan statement or within your account overview within online banking.
  • Debit card payments can be made over the phone on 0345 600 6016*. The debit card must be in your name and registered to your home address. We cannot accept payment by credit card. Lines are open Monday to Friday 8am - 10pm, Saturday and Sunday 9am - 5pm.
  • 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.

Comments
geoFF1988

I would like to make an additional payment of 3000 will this be ok to do this thank geoff

Hi @geoFF1988

 

You can definitely make a payment of £3,000. If you call the number above, my colleagues will be able to give you an illustration for how the payment will change your loan. The line is open between 8am - 10pm on weekdays and 9am - 5pm at the weekend. 

Missymoo84

Do you get charged interest on top of additional payments ?  Say I wanted to get my loan down by 5 months do I just pay x 5 of my monthly repayments or do you add interest on , took loan out 2015

Hi @Missymoo84, the easiest way to see how additional payments would effect your loan, is to call the number listed above, the line is open between 8am - 10pm on weekdays and 9am - 5pm at the weekend. 

Gemster1984
I have made two additional payments to my loan in the last two weeks I have have a rebate for the first but the second one I did over a week ago I have had no interest rebate why?

Hi @Gemster1984, I'm sorry to hear that your rebate hasn't been applied to your account yet. When you make an additional payment towards your loan, we apply and calculate the rebate manually, so sometimes it can take a little longer depending on the amount of payments that are made. We do our best to get the rebates calculated as quickly as possible though. 

 

If nothing has appeared on your account by now, we'd advise to call the number above and our team can double check on the payment and let you know when the rebate will be applied. 

lincraig

hi do i have to ringyou everytime i want to make additional payments

Hi @lincraig, thanks for getting in touch. You don't need to call every time you make a payment. You can use your loan account number and sort code, using your name as a reference, and the payment will be applied to the balance. Our Payments team will then contact you to find out if you want to reduce the term or the monthly payment amount. 

 

If you call ahead of the payment, you can tell us your payment preference and then all extra payments will be used to reduce the term or payment automatically. We'll send out a letter once the payment has cleared to give you an updated balance as well :-)

Daimo72

How long after taking a Tesco loan out can I make additional payments? Thank you in advance

You can make additional payments to the loan any time you'd like @Daimo72. Please give our loans team a call on the number included in the original text so we can discuss this with you.