Tesco Bank Offers the Lowest Personal Loan Rate From a UK Bank in a Decade

News provided by

Tesco Bank

28 Dec, 2012, 11:13 GMT

EDINBURGH, Scotland, December 28, 2012 /PRNewswire/ --

Tesco Bank has reduced its interest rate on personal loans between £7,500 and £15,000 to 5.2% APR representative, offering customers the lowest personal loan rate from a UK bank in a decade*.

     (Logo: http://photos.prnewswire.com/prnh/20121017/568123 )

                                           
    Loan value        Rate                       Best Buy 
                                                 ranking*

    GBP7,500 -        5.2% APR representative
    GBP15,000        (reduced from 5.7%APR       1
                      representative)

The new interest rate is effective from Friday 28 December.  All Tesco Bank loans are available online or over the phone. Customers should visit http://www.tescobank.com for more information.

Tesco Bank loans are convenient with a straightforward application process that gives the majority of customers an instant decision on their application**. The loans have fixed monthly payments and no set-up charges, customers can choose the repayment date as well as having the option to apply for a payment break at the start of the loan (subject to eligibility)***.

David McCreadie, Managing Director of Banking at Tesco Bank, said:

"Tesco Bank is offering the lowest personal loan rate from a UK bank in a decade because we understand that our customers are finding it challenging at the moment and are looking for ways to manage their finances carefully. They are looking for great value without compromising on service and this is the kind of competitive rate they are asking for****."

Notes to editors:

* Based on Defaqto data, information correct at 21st December 2012.

** Customers can apply online and by phone, 0845 600 6016, between 8am - 8pm. Customers can save and return to online applications.

*** Tesco Bank Loans are available to over 18s only, subject to status, UK residents only. The interest rate offered will depend on the amount the customer wants to borrow and their individual circumstances.

**** 97% of our customers say they are 'satisfied or very satisfied' with the loan service they receive from us (sample size 300, new and existing customers), Tesco Shopper Thoughts panel.

About Tesco Bank:

  • Our customers hold 6.5 million accounts and policies with us.
  • We opened for business in 1997 and since 2008 have been owned by Tesco PLC.
  • We now have over 3000 staff based in Edinburgh, Glasgow and Newcastle.
  • For the year ending February 2012, Tesco Bank made a base line profit of £203m - up 29% from the year before.

Our aim is to be the financial services provider of choice for Tesco customers by giving them good service, great value and by rewarding their loyalty for shopping at Tesco.

Tesco Bank offers a popular range of simple personal banking products.

Tesco Bank products and services are available online at tescobank.com and by telephone from our UK-based service centres.

We aim to be a valued part of the communities we operate in.

For media enquiries please contact:

Adam Treslove, Tesco Bank, adam.treslove@tescobank.com, +44(0)131-479-1345

Fishburn Hedges, Risha.Parmar@fishburn-hedges.co.uk, +44(0)20-7544-3050