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Published 13 May 2024
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14 minutes

TSB Personal Loans Review: Pros, Cons & Features

TSB offers unsecured personal loans to existing current account holders and new customers. While TSB customers can access larger loans and get the money quicker, TSB still offers an attractive loan product for non-customers.

Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.

TSB personal loans: At a glance

TSB is one of the best lenders we’ve reviewed. It scores well across all categories, with a quick application process, a good level of repayment flexibility and a fairly broad range of customer support.

You can apply for a TSB loan whether you have a current account with the bank or not. However, existing customers can access a wider range of loan amounts, and they could also get the money transferred to their account on the same day they’re approved.

If you don’t have a TSB current account, your loan options are more limited and it may take a full day before you receive the loan. But even when you consider this, TSB compares well against the other lenders we’ve reviewed.

To help you compare deals, lenders are required to display the total cost of a loan as a percentage, known as the annual percentage rate (APR). This tells you how much a loan will cost you over one year, taking into account the interest rate and any standard fees. You should consider this, alongside other features of a loan, to decide if a loan is right for you.

NerdWallet Review Rating

5.0

TSB

See how we rate our lenders below.

Important information: Neither the review nor the star ratings considered the lender’s lending rates or representative APR, and therefore does not reflect how much they charge to borrow with them. The rates on this page have been provided as additional information. Always check and compare a lender’s rates against others on the market when considering a loan. The rate you are offered will be dependent on your personal circumstances, loan amount and term and may differ from the representative APR.

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TSB Personal Loan

TSB Personal Loan
  • Representative APR
    5.9%
  • Representative Example
    Representative APR 5.9%. Based on a loan of £7,500 over 60 months at an interest rate of 5.75% p.a. (fixed). Monthly repayments of £144.11. Total amount payable £8,646.60. Maximum APR 39.9%.
  • Available amounts
    £300 to £50,000
  • Available Terms
    1 to 7 years
  • Joint Loans
    Yes

Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • Must be aged 18 or over.
  • Must be a UK resident.
  • Must have a TSB current account (for more than 3 months) to apply for loans of £300 to £50,000, if not, the amounts available are £1,000 to £25,000.

Learn more about how we bring you our review.

TSB loans pros & cons

Pros

  • You can ask to change your payment date.
  • You can apply for a payment holiday.
  • TSB current account holders can apply for smaller and larger loan amounts.
  • You can get a joint loan.

Cons

  • If you’re not already a TSB customer, you may not get the money in your account until the next working day.
  • TSB may charge up to 58 days’ interest if you want to make a full early settlement.

The pros and cons featured here are chosen by us based on a combination of our expert opinions from our research of the personal loans market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK in February 2023 to identify the features of personal loans that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your circumstances. Information was correct at the time of publication but may have changed since.

TSB loans overview

TSB is a UK high street bank, which was acquired by the Spanish banking group Sabadell in 2015 after Lloyds TSB split into two separate firms in 2013. TSB offers a range of personal and business financial products, including current accounts, mortgages, credit cards and personal loans.

You can apply for a TSB loan if you have a TSB current account or not. But if you don’t have a current account, you will only be able to borrow between £1,000 and £25,000 and it could take longer to receive your money.

TSB loans offer a good amount of flexibility as you can choose when you make your payments and, if needed, apply for a payment holiday. You can also make overpayments to clear your loan quicker, although you could face interest charges if you want to settle it in full.

Amount borrowable£1,000 to £25,000 (£300-£50,000 if have TSB current account)
Term lengthOne to five years (three months to seven years if have TSB current account)
Time to get a decisionInstant
Time to receive funds once approvedOne working day (same day if have TSB current account)
Need to have an account with the providerNo
Customer supportPhone, branch, social media, app, chat (in-app only)

How do we rate TSB personal loans?

We’ve assessed a selection of UK loan providers and rated each against a set of criteria that take into consideration what loan customers tell us are the most important product features. 

Here’s what we review and how TSB performs:

CriteriaStar rating
Flexibility4.5 stars
Application process5 stars
Available customer support3.5 stars
Overall (The overall score is weighted in favour of the features borrowers told us they consider most important)5 stars

NerdWallet’s star rating assessment criteria does not include the lender’s product lending rates or fees. Always check and compare a lender’s rates against others on the market when considering a loan.

Category definitions

Flexibility

A flexible loan gives customers a choice of funds, terms and payment options. That means offering a wide range of loan amounts and repayment term options, allowing the borrower to change their payment date and make overpayments, for example.

Application process

The best application processes are quick and easy, with clear eligibility criteria, soft checks and multiple ways to apply to suit different customers’ needs.

Available customer support 

Good customer support can include clear information on the lender’s website and a customer service team that’s available most of the time and can be reached in multiple ways.

Where TSB personal loans stand out

TSB customers can access better features

If you’ve had a TSB current account for at least three months, you could borrow between £300 and £50,000. This is one of the widest ranges offered by personal lenders we’ve reviewed. TSB customers could also get the loan in their account on the same day, which is quicker than non-customers.

You can apply for a payment holiday

TSB allows you to take up to two non-consecutive payment holidays in a 12-month period, subject to checks. This can be a useful option to have at your disposal, but you should consider the extra costs this could involve before applying.

You could get an instant decision

In most cases, when you apply for a TSB loan, you should get an instant decision on your application. This means you shouldn’t be left waiting to hear if your application is successful or not.

Where TSB personal loans fall short

Limited options for non-customers

If you don’t have a TSB current account, you can still get a loan. But you can only borrow between £1,000 and £25,000 over a term between one and five years, which is more limited than if you were an existing TSB customer. 

You can only get a joint loan in a branch

While you can apply for a joint loan from TSB, you can’t get one online. You have to visit a branch to apply, which may not be convenient for everyone.

Features

The features of a TSB personal loan vary, depending on whether you have a current account with the bank or not.

If you don’t have a TSB account, you can apply to borrow between £1,000 and £25,000, over a term of one to five years. This choice is typical of most lenders, but you may be able to get a larger or longer loan term elsewhere.

If you’ve got a TSB current account, you have a much wider range of loan amounts to choose from. You could borrow as little as £300 or as much as £50,000, or anywhere in between.

Loans of £300 to £999 come with repayment terms of three to 12 months. If you’re borrowing more, you can repay the loan over a term of one to seven years. But if you’re borrowing more than £25,000, the maximum loan term is five years.

This means that TSB customers have a wide range of loan amounts and terms to choose from, and this is likely to be a wider choice than many lenders can offer.

Joint loans

Unlike some lenders, you can get a joint loan from TSB. This means you can apply and share the responsibility of making repayments with another person, such as your partner or another family member.

The downside is that you need to go into a branch to apply. Even if you live near a branch, this means taking out a TSB joint loan is not as convenient as other lenders that allow you to apply online.

Bear in mind that if you take out a joint loan, both applicants are jointly responsible for repaying the loan. Your credit files will also be linked and any missed payments will affect both credit scores.

Flexibility

A TSB loan offers a lot of repayment flexibility.

When you apply for a loan, you can choose your payment date. But if you change your mind during the term and want to make payments on a different day, you can ask TSB to change it.

Changing the payment date could affect the amount of interest you pay, so it’s worth checking this before requesting a change.

If your circumstances change and you need a break from making payments, TSB also gives you the option of applying for a payment holiday. These payment holidays last for one month, and you can take a maximum of two in a 12-month period (although you can’t take two in a row).

You can apply for a holiday as soon as you’ve made at least one loan repayment, subject to approval from TSB. 

Having the option of a payment holiday can be reassuring, if you face an unexpected emergency expense one month that would make it difficult for you to make your payment, for example.

But you should think carefully before applying for a payment holiday and consider if it’s the best option for you. TSB will continue to charge interest while you’re taking the payment holiday, so your loan will cost more in total.

Extra repayments

While you’re repaying a TSB loan, you have the option of making overpayments. TSB won’t charge you to do this, and overpaying can reduce the amount of interest you pay overall.

You can overpay by paying a lump sum towards your loan or by increasing the amount you pay each month.

It’s worth checking to see if TSB sets any limits on the amount you can overpay.

You can also choose to repay your loan in full before the end of the term. To do this, you’ll need to contact TSB for a settlement figure, which will include up to 58 days’ interest charges.

Additional borrowing

If you already have a loan with TSB, you can apply for an additional loan. To be accepted, you’ll need to pass TSB’s checks and show you can afford to borrow more, as this will be a new loan application.

Assuming your application is approved, you can choose to keep your current loan agreement and take out a new, separate loan so you would have two monthly payments.

Alternatively, you could take out a new loan that will cover the cost of paying off your existing loan and give you the extra money you need.

While this second option means you only have one monthly payment, you need to consider how any change in interest rate or loan term could affect the total cost of your loan. 

Application process

TSB scores well for its application process and has one of the highest ratings of the lenders we’ve reviewed.

The eligibility criteria for a TSB loan are easy to find on the website, so you won’t waste time trying to work out if you can apply.

TSB also offers a loan calculator that can help you to see how changing the loan amount and loan term will affect your repayments. 

Once you know how much you want to borrow, you can get a quote from TSB. This won’t affect your credit score and allows you to see if you qualify for a loan.

Alternatively, you could consider using a loan eligibility service instead of applying for a loan directly from a lender. 

This allows you to see your chances of getting a loan from multiple lenders, without any impact on your credit score. It’s worth checking to see how many lenders it looks at and to make sure it only uses soft credit checks.

» MORE: Tips for applying for a loan

How long does it take to apply?

In most cases, TSB should give you an instant decision when you apply for a loan. It may take longer if TSB needs more information.

After your application is approved, you should get the money in your account quickly.

TSB current account holders could get their loan on the same day if they are approved before 6pm. Otherwise, it will be the next working day.

If you don’t have a TSB current account, it will take a bit longer before the money arrives in your account. But, if you’re approved before 6pm, you should still get your loan before 7pm on the next working day.

What information do I need?

When you apply for a TSB loan, you’ll need to provide the following information:

  • your name and address
  • your contact details
  • your employment status
  • details about your income and expenses
  • how much you want to borrow over what term
  • what you plan to use the money for

You will also need to say whether you have a TSB current account or not.

Availability of customer support

You can contact TSB’s customer support in several ways, but this is an area where its score is slightly lower than other lenders.

TSB is a high street bank with branches across England, Scotland and Wales so, if you live near one, you can pop in to ask for information or help. There are no TSB branches in Northern Ireland.

Alternatively, you can also call its customer support for help with any queries.

Unlike some lenders, there isn’t a live chat option available to everyone. But, if you have the TSB mobile app, you can chat with its customer support during working hours on Monday to Friday.

TSB has an X (formerly Twitter) account that you can use for general queries and assistance. But it won’t be able to help with specific questions about your individual loan agreement.

Customer ratings

TSB has an ‘Excellent’ rating on Trustpilot from over 23,000 reviews. This compares well against other lenders, particularly other high street banks.

TSB performs strongly as it is one of the top-rated lenders that the review site Fairer Finance looks at, with a customer experience rating of 65%.

This information is correct as of 9 May 2024.

Am I eligible for a TSB loan?

You need to meet the following requirements to apply for a TSB loan:

  • You need to be a UK resident.
  • You must be at least 18 years old (or 21 years old to apply online).
  • You need to earn at least £850 a month after tax.
  • You must be employed or retired with a pension.
  • You must have no bankruptcies or county court judgments (CCJs) within the last five years on your credit file.

You are eligible to apply whether you have a TSB account or not.

TSB will run a hard credit check, which will appear on your credit file, and other affordability checks to make a final decision on whether to approve your loan application.

TSB frequently asked questions

Is TSB a good bank?

TSB is a high-street bank that has a long history in the UK. It is authorised and regulated by the Financial Conduct Authority (FCA). You should do your own research into the services offered by TSB and look at customer reviews to work out if the bank is best for your situation.

What is the interest rate on TSB loans?

The interest rate on TSB loans can change. The interest rate you receive also depends on a number of factors, including the amount you borrow and your credit score. If you have a higher credit score, you improve your chances of getting a lower rate of interest.

Review methodology

At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.

Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.

Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.

Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.

You can view our full review methodology here.

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