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The Only TSB Loan Review You Need in 2022

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Loan amounts: £1,000 to £25,000 (£300- £50,000 for existing customers)
Loan terms: 3 months- 7 years (depending on the amount)
APR: 3.5% (lowest)
Funding speed: Same day or next day
Fees: None
Customer service: Phone & live chat

Price: £1,000

Updated: July, 25, 2022

Pros

  • Same-day funding
  • No prepayment fee
  • Soft check
  • Repayment holidays
  • Loan management
  • Top-up available
  • Cons

  • Charges interest for overpayments
  • Available only to employed and retired customers with a pension
  • High credit score required
  • TSB is a UK-based retail lender that offers personal and business loans at affordable rates, as well as some extra perks.In this TSB loan review, we’ll explain exactly what the bank offers, what benefits it provides, and how you can apply for a TSB loan.

    How Do TSB Loans Work?

    TSB offers a variety of unsecured personal loans, including: 

    • Loans that help you finance a new vehicle or used car
    • Loans that can help you cover the cost of weddings
    • Graduate loans that can assist you in sorting out your finances after uni
    • Loans for home improvements and repairs 
    • Loans that can help you repay credit card debt or personal loan debt 
    • Small loans to cover unexpected expenses, like medical bills or vehicle repais 

    The loan amount varies from £1,000 to £25,000, but existing customers (who have been with the bank for a minimum of 3 months) can apply for loans of between £300 and £50,000. 

    If you are looking for a smaller loan that you can repay in a shorter period of time, you might want to consider going for one of the best payday loans in the UK

    Worth noting: TSB also offers business loans, including base-rate and fixed-rate loans and commercial mortgages.

    How To Apply

    If you already have an account with TSB, you can log into your account on the bank’s website and ask for a quote.

    New customers can apply either online, by phone, or by visiting a TSB branch.

    To apply for a loan online:

    1. Go to TSB’s website.
    2. Choose the loan amount and term using TSB’s loan calculator.
    3. Scroll down and click on ‘Apply Now’.
    4. Enter your:
    • Personal information (name, email, date of birth, purpose of loan).
    • Details about your residential status.
    • Employment information.
    1. Click on ‘See my personalised rates’.

    TSB will then conduct a soft check to make sure that the information you’ve provided in your TSB loan application is accurate and offer you a quote (if you are eligible). 

    Worth noting: If you have bad credit and think that you won’t get approved by TSB, you could try one of the direct online lenders, such as QuidMarket or Creditspring who are willing to service borrowers with poor credit rating. 

    To apply for a loan by phone, you can call 0345 835 3861 from Monday to Friday between 8 a.m. and 6 p.m.

    Worth noting: New customers can apply for a loan online only if they’re over 21 years old. Those between the ages of 18 and 21 must apply by phone or in a branch. If you want to carry out the entire procedure online (even if you are under 21), take a look at what THL Direct has to offer, but keep in mind that payday loans come with higher interest rates.

    What Are The Eligibility Requirements?

    Loan applicants need to meet the following TSB lending criteria:

    • Be at least 18 years old.
    • Be a UK resident.
    • Be employed or retired with a pension.
    • Have no County Court Judgements or bankruptcy within the last 5 years.
    • Have an annual income of +£10,200 (before tax).

    How Does Repayment Work?

    TSB uses direct debit to withdraw money directly from customers’ accounts on the day when they agreed to make payments.

    If you want to take a look at other banks and their loan offers, here are a few TSB alternatives.

    Features

    Loan term

    The minimum repayment term for loans between £1,000 to £50,000 is 1 year and the maximum repayment term is 7 years

    For loans between £300-£999.99, the minimum repayment term is 3 months and the maximum repayment term is 12 months.

    If you want more flexibility in your loan terms, consider Tesco Bank, whose loan terms can stretch to 10 years. 

    Early repayment

    Borrowers can repay their loans early, either in part or in full, without being subject to a prepayment penalty fee.

    However, if you have more than 90 days until the maturity date, TSB can charge up to 58 days’ worth of interest.

    Worth noting: Online direct lenders like Fund Ourselves and Mr Lender have no early repayment fees whatsoever, although they do charge a higher interest rate.

    Loan repayment holidays

    TSB  offers a loan repayment holiday to borrowers who have paid at least one monthly payment on their loan to request up to two non-consecutive one-month repayment holidays every year.

    The bank still reserves the right to decide whether or not to grant you a one-month break from their loan repayments and will charge you interest. 

    Personalised quote/ Soft search

    The bank gives customers a rough estimate of their TSB loan rates when they apply for a loan based on the information they provide in the online application form and the soft credit check they run afterward. 

    In other words, you get a personalised quote without affecting your credit score.

    Same-day funding 

    If you’re already a TSB customer and you applied for the loan anywhere between 9 a.m. (or a little earlier) and 8 p.m., you might receive the money on the same day or the next day (excluding Sundays and holidays).

    Worth noting: There are direct lending platforms that can provide funding in less than 90 seconds after your application is approved. 

    Instant decisions

    Once TSB processes your application and conducts a soft check, which usually takes a couple of minutes, it will let you know whether you’re eligible for a loan and roughly how much you’ll need to repay in total.  

    Joint applicants 

    TSB allows you to take out loans with another person. If you do, you will be able to keep your current account and will get your own Visa Debit card for cash and payments.

    Top-Up

    TSB borrowers can take a second loan (and keep their existing one) or combine the loans in a single payment.

    Pricing

    The interest rate on your loan depends on the amount of money you want to borrow, the payment term, and your personal circumstances. All TSB loan interest rates (for personal loans) are fixed.

    The lowest APR for loans between £7,500 and £25,000 is 3.5%, while the maximum APR representative they offer is 39.9%

    For example,  if you want to borrow £7,500 over 5 years, with an ARP of 3.49%, you’ll pay £136.41 monthly for a total repayable of £8,184.60.

    Both Sainsbury’s Bank (3.4% for loans £7,500 – £25,000) and Virgin Money (2.9% for  loans £7,500-£15,000) have lower representative APRs than TSB Loans

    Worth noting: TSB loan rates for existing customers is 3.5% p.a. fixed interest with no fee, on loans of £10,000 over 3 years.

    Customer Support

    Borrowers can get in touch with TSB by:

    • Phone (0345 835 3861) from 8 a.m. to 8 p.m. Reporting lines for a lost/stolen card or fraud are open 24/7.
    • Branch: TSB branches are open from Monday through Friday, usually until 4 p.m. Hours may vary depending on the branch you choose.
    • Chat: This is the fastest way to reach TSB. You can contact its customer support team via chat between 8 a.m. -5:30 p.m. from Monday to Friday. If you want to report fraud, you can do so between 8 a.m. and 9 p.m. 

    TSB Bank Loans Review: Success Stories

    TSB has a 3.6 rating on Trustpilot based on around 15,460 reviews. Borrowers praise its customer service and easy application process.

    I applied for a personal loan after being prompted by a pre-selected notification online. The process was really easy. I was referred then arranged a telephone appointment. I was called on time by Gayle, who was really friendly and professional, explaining all the product features including alternative types of borrowing. Upon confirming the loan was the correct product, Gayle explained the features, terms, and conditions including scenarios such as overpayments, payment holidays, how interest was accrued, etc. I signed the loan agreement forms digitally with the funds crediting my account instantly. My experience was superb. A really good product with superb service. Thank you.’ – Paul.

    ‘I had a very reassuring meeting with a member of TSB staff at Somerton Somerset branch, she was extremely helpful, and I came away completely satisfied with the new arrangements for my account.’ – Carol Hodges.

    ‘I have and use accounts in various banks UK in my daily practice and, as a result, I can objectively compare which bank provides the most effective level of service. That is why I use TSB exclusively as the main bank.’ – Bryan Hanson.

    Bottom Line

    If you find yourself in a situation where you need a little extra cash, TBS will make it easy for you to calculate your interest rate, offer you a personalised quote in minutes, and set repayment schedules. What’s more, this bank provides benefits that many other loan providers don’t, including top-up options, repayment holidays, and soft checks, among other things.

    FAQ

    Can I get a second TSB loan?

    With TSB you can top up your loan or get a second one alongside your existing loan.

    Can I make overpayments on a TSB loan?

    TBS allows overpayments and doesn’t impose a prepayment fee, but it can charge you interest for up to 58 days if you have more than 90 days left until your maturity date.

    What credit score do I need to get a TSB loan?

    Based on our TSB loan review, the bank typically accepts applicants with a high credit score.

    My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.