Tesco Bank provides current accounts, savings, insurance and loans, using the customer service and trust its supermarket brand has built up over the years in the UK.
Tesco is one of the United Kingdom’s biggest supermarket chains, and has stores across the country. It now has its own financial solutions provider, Tesco Bank, that is wholly owned by the company. The strong brand name has helped Tesco Bank to grow rapidly, and by February 2014, the company had around 7 million customers nationwide. The bank’s headquarters are in Edinburgh, and they provide loans, mortgages and credit cards, as well as saving products and accounts.
Tesco was founded in Hackney, east London, in 1919, operating from a market stall. Their first store opened in 1929, and they soon expanded. By 1961, their Leicester store was the largest supermarket in Europe. As of 2014, they have over two and a half thousand stores.
Looking for new ways to provide added value to their customers, they launched Tesco Bank in 1997.
At its launch, the bank was half-owned by the supermarket chain, and half owned by Royal Bank of Scotland. In 2008, Tesco bought ought the Royal Bank of Scotland share, and it was granted its own independent operating license. Their banking facilities are accessed online or over the telephone, but they have previously announced plans to open branches in their stores.
Personal loans are available to new and existing customers of the bank. The APR for the loan depends upon how much is borrowed, as there are five distinct bands. These are £1,000 - £2,9999, £3,000 - £4,999, £5,000 - £7,499. £7,500 - £15,000, and £15,001 - £25,000.
All applications are subject to status and to a credit reference check. Rates are fixed for the length of the loan, so borrowers will always know how much they have to pay.
There are no set-up fees, and payment breaks may be available at the commencement of the loan period for eligible applicants.