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Loans

Can I settle my loan early?

Yes, you can settle your loan at any time during the loan term; however an early settlement fee of up to two months interest may apply.

 

To settle your loan call 0345 600 6016* and we’ll confirm your early settlement payment amount. The settlement amount will include the early settlement fee which will include any interest rebate we must give you.


Making an early settlement payment?


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

 

  • Online Transfers We will give you our sort code and using this along with your loan account number you can transfer the payment to us from your account.
  • 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 cards.
  • 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. We’ll refund any monthly repayments made between the time you send us the cheque and when the cheque is applied

Should I cancel my Direct Debit?
No, we’ll cancel the Direct Debit instruction for you as soon as your final payment has cleared. In the unlikely event of an overpayment, the funds will be returned to you within 8 working days.

 

For more information on making additional payments towards your loan, please see our existing FAQ. 


Lines are open Monday to Friday 8am to 10pm, Saturday and Sunday 9am to 5pm.

 

*This number may be included as part of any inclusive call minutes provided by your phone operator.

Version History
Revision #
10 of 10
Last update:
February
Updated by:
 
Comments
fiqbal79

I can only see credit card and internet saver account at online banking. I also have loan account but I cannot see loan account online.

Hi @fiqbal79, you should be able to add this through your online banking. If you are trying to add the account via your current online banking log-in and you're using your personal loan sort code and account number to do so then this should automatically link up for you once processed. If you can't see this option or are having difficulty adding this, please give our Online Helpdesk Team a call and they will be able to troubleshoot with you in real time to help get this resolved. You can reach them on 0345 300 3511 and they're available 24/7 to help. 

AGETL

Hi,

 

The paperwork says that I will be charged a cancellation fee of up to 28 days of interests as early repayment charge. However it is not clear what does this mean? What if I reduce my monthly payments to be 1 pound a month rather than paying up the full loan? Also, how much is to be paid?

 

I am offered a 25K over 3 years @7% APR. What are the charges to pay up the loan after 1 year has passed? What about 2 years? 

 

Thanks in advance. 

Hi @AGETL, the fee for settling your loan in full early is up to 28 days interest. You also get an interest rebate which comes off the balance of your loan, so you will always pay back less than what you owe. The interest on your loan is front loaded so the settlement fee gets less as the term goes on, but then so does the interest rebate. I’m afraid we can’t calculate what the fee would be until you are ready to get a settlement quote. We use the actuarial method to calculate this, and you can check this by using an actuarial calculator online.

 

If you make an overpayment and chose to reduce your monthly payments, there will be no charge and you will also receive an interest rebate back, meaning you would save money.  You would also have the option of reducing the term of the loan if you make an overpayment, which gives you a greater interest rebate. We will be able to give you an illustration on what the term/monthly figure would reduce to, but again we are unable to do this until you have received the loan and are thinking about paying it back. 

 

I hope this information helps