Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk
Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk

Tesco vs M&S Personal Loans – Compare Rates & Terms in 2025

Looking to borrow in 2025? Tesco Bank and M&S Bank both offer fixed-rate personal loans with competitive APRs, but understanding their differences can help you choose smarter.

Tesco’s Clubcard members can access rates as low as 5.8% APR for loans between £7,500–£25,000, while M&S Bank offers representative rates from 5.9% APR on amounts within the same range.

This comparison will guide you through loan amounts, repayment terms, approval flexibility, and special perks—empowering you to pick the lender that fits your financial needs best.

Estimated read time:

Aug 31, 2025 | Personal Loans

Table of Contents (with Linking)

Introduction – Why Compare Tesco and M&S Personal Loans?

If you are thinking about a personal loan in the UK, Tesco Bank and M&S Bank are two well-known names. Both offer loans without needing your house or car as security, which makes them “unsecured loans.”

However, the details of each lender are different. Interest rates, loan sizes, and repayment terms vary. As a result, choosing the right provider could save you money and stress.

In this guide, we’ll compare Tesco vs. M&S personal loans, explain who each one suits best, and suggest alternatives if neither is right for you. If you searched “tesco vs m&s personal loans”, this guide is for you.

👉 For a wider overview, see our Personal Loans UK guide. 

tesco vs m&s personal loans
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Overview of Tesco Personal Loans

Tesco Bank loans are flexible and cover a range of borrowing needs, from cars to home improvements.

Tesco Loan Amounts and Terms

  • Borrow between £1,000 and £35,000

  • Repay over 1 to 10 years

This flexibility makes Tesco one of the stronger choices for larger projects.

Tesco Loan Interest Rates and Who Can Apply

  • Interest rates (APR) start from 6.9%. The rate you actually get depends on your credit score and personal circumstances.

  • You must be at least 18, live in the UK, and pass a credit check.

Tesco Loan Benefits

  • Tesco Clubcard members may be offered lower rates.

  • The online application is quick, with instant decisions for many borrowers.

Overview of M&S Personal Loans

M&S Bank, part of HSBC, is another trusted UK provider. Its loans are straightforward and easy to understand.

M&S Loan Amounts and Terms

  • Borrow between £1,000 and £25,000

  • Repay over 1 to 7 years

This is suitable for smaller or medium-sized borrowing.

M&S Loan Interest Rates and Who Can Apply

  • APR starts from 6.8%, which can be slightly lower than Tesco.

  • Applicants need a good credit record and must live in the UK.

M&S Loan Benefits

  • No arrangement fees are added.

  • Some borrowers can take repayment holidays, giving a short break from payments (though interest continues).

Head-to-Head Comparison (Tesco vs. M&S)

When comparing the two side by side, some key differences appear.

Feature Tesco Bank Loans M&S Bank Loans
Loan Amounts £1,000 – £35,000 £1,000 – £25,000
Loan Terms 1 – 10 years 1 – 7 years
Representative APR From 6.9% From 6.8%
Extra Benefits Clubcard discounts, longer repayment terms Repayment holidays, no fees
Best For Larger borrowing, long-term projects Smaller borrowing, simple repayment

👉 Want to know how banks set their rates? See our How to Compare Unsecured Personal Loans Effectively.

Who Should Choose Tesco Loans?

Tesco loans may be a better choice if you:

  • Need to borrow more than £25,000

  • Want to repay over up to 10 years

  • Hold a Tesco Clubcard and could benefit from reduced rates

  • Prefer extra flexibility for large projects like home renovations

In short, Tesco is designed for bigger borrowing with longer repayment options.

Who Should Choose M&S Loans?

On the other hand, M&S loans are often a good fit if you:

  • Borrow between £1,000 and £25,000

  • Want a shorter repayment term (1–7 years)

  • Like the idea of no fees or repayment holidays

  • Value simplicity in your loan terms

Therefore, M&S works well for smaller loans, such as buying a car or consolidating a few debts.

Alternatives to Tesco & M&S Personal Loans

If neither Tesco nor M&S fits your needs, you could explore:

Alternatives to Tesco & M&S Personal Loans

If neither Tesco nor M&S feels right, you do have other choices.

Other High Street Bank Loans

Banks such as NatWest, Halifax, and Lloyds also offer personal loans. It’s worth comparing them for rates and terms.

Specialist Loan Types

Online Loan Comparison Tools

You can also use broker sites and our loan calculator guide to check affordability before applying.

How to Compare Branded Personal Loans Effectively

When comparing Tesco, M&S, or any UK lender, keep these tips in mind:

  • Check the APR – The advertised rate is only a guide. Your real rate may be higher.

  • Look at the total cost – Don’t just focus on the monthly repayment.

  • Watch for perks and extras – Such as repayment holidays or discounts.

  • Think about early repayment – Some lenders charge small fees if you repay early.

  • Use a calculator – Our loan calculator helps you see how much your loan will cost overall.

As a result, you’ll make a more confident and informed choice.

Pros & Cons Summary Table

Provider Pros Cons
Tesco Loans Higher maximum loan amount, longer terms, Clubcard perks Representative APR slightly higher than M&S
M&S Loans Lower starting APR, repayment holiday option, no fees Lower borrowing cap, shorter maximum term

Conclusion – Which Loan Is Right for You?

So, should you pick Tesco or M&S for your next loan?

  • Choose Tesco if you want to borrow larger sums or prefer a longer repayment window.

  • Pick M&S if you want a simple, smaller loan with repayment flexibility and no hidden fees.

Ultimately, the right choice depends on your credit profile, borrowing amount, and repayment preferences. Always compare multiple lenders before making a final decision.

👉 For a full overview, return to our Personal Loans UK guide.

FAQs

Are Tesco loans better than M&S loans?
It depends on your needs. Tesco is better for larger, longer-term loans, while M&S is better for smaller, simpler loans.

Do Tesco and M&S loans affect my credit score?
Yes. Both run credit checks, and an application will leave a mark on your credit file.

Can I repay my Tesco or M&S loan early?
Yes, both allow early repayment. However, there may be a small charge depending on the loan terms.

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