Tesco Tops Loan Lenders With Tempting Interest Rates
Price comparison website Moneysupermarket.com declared the revamped Tesco unsecured personal loan as the “market leader” this week.
The website noted that competition appears to be returning to the market for unsecured personal loans with some lenders beginning to offer “tempting” interest rates. This has followed the cost of personal loans peaking in May this year.
Tesco has lowered its interest rates on all loans between £7,500 and £14,999, to an average of just 7.7 per cent, with repayment periods of between 12 and 120 months.
This means that borrowing £7,500 over 36 months would mean monthly repayments of £233.20, with a total sum of £8,395.20 to repay. Borrowing the maximum available sum of £14,999 over 60 months would lead to monthly repayments of £299.73 and a total sum to repay of £17,983.80. In both instances, interest rates are calculated daily.
Moneysupermarket.com noted that with no set-up charges and fixed monthly payments, personal loans of this nature offer security when it comes to knowing exactly what repayments will be, making it easier to budget for them.
All such payments would take place monthly by direct debit, with the first taking place one month after the issuing of the loan. There is, though, the option to defer payments for the first two months, making the third month after payment of the loan the first month that a repayment is due.
Unfortunately, people with bad credit will have difficulty accessing these interest rates – and it should be noted that these personal loans are only on offer until 10 November. Furthermore, early repayment will mean two months additional interest are liable to be charged.
However, Moneysupermarket.com said that the loans still represented excellent value for anyone looking to borrow for a new car or home improvements.
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