i have £4000 left to pay on my tesco loan and want to borrow another £5000, i read online that if they accept you for an increase they pay off the old loan and give you new one? how does that work? does it mean if i borrow another five thousand, they pay off the four thousand, and give me a loan of five thousand, effectively becoming a nine thousand pound loan? or have i got this massively wrong??
@juditorquay Hey, thanks for your message. If you already have a Tesco Bank Loan you can apply to borrow more once you have made 8 consecutive monthly payments on your existing loan. When you apply to borrow more, a new credit reference agency search will be carried out.
We only offer one loan per customer. So if you want to borrow more we’ll close your existing loan and the new loan will pay off any existing balance and cover the additional amount you want to borrow. If you cancel the new loan within the 14-day cooling-off period, you won’t be able to re-instate your old one. We will charge you up to 28 days’ interest to pay off your old loan. This is to cover the number of days from when you apply to receiving your new loan. This will be added to your new loan amount and you will pay interest on this, which may lead to an additional cost for you.
The minimum additional amount is £1,000 above your existing loan balance and the total borrowing limit is £35,000. With your new loan you’ll continue to make one monthly payment but the cost of your monthly payment may change depending on the loan term and amount you choose to borrow.
Please note, it's important that you always check the interest rates of any new product. This could be more or less than your current loan and should be considered as part of your decision to increase your loan amount.
If you'd like to apply for a top up loan, please call us on 0345 600 6016 (Mon - Fri: 8am - 6pm Sat - Sun: 9am - 2pm) and my colleagues will be happy to help.
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