Supermarket Loans: Your Guide to Convenient and Affordable Borrowing

Looking for a supermarket loan? Discover the best options available and compare personalised loan offers. Find out how much you can borrow, the costs involved, and whether you can get a loan with bad credit. Choose Wisely helps you make informed decisions for your financial needs.

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Written by Mark Grimley
Read time: ~5 mins
Published: 28th September 2023

Welcome to Choose Wisely, your trusted source for finding the best supermarket loans tailored to your needs. If you're looking for a simple and convenient way to borrow money, you're in the right place. In this comprehensive guide, we'll explore what supermarket loans are, which supermarkets offer them, how much you can borrow, the associated costs, pros and cons, alternative options, and more. Let's dive in!

What is a Supermarket Loan?

A supermarket loan is a type of personal loan that you can apply for through select supermarkets. These loans are designed to provide quick and accessible financing solutions to individuals who may have poor credit profiles or limited financial knowledge. Supermarket loans offer convenience, as they can be obtained while shopping for groceries or other items in-store or online.

What Supermarkets Offer Loans?

Several well-known supermarkets in the UK provide loans to customers. Please note that the availability of loans may vary based on your location and the specific supermarket you choose. Check with your preferred supermarket for more information.

How much can I borrow with a Supermarket Loan?

The amount you can borrow with a supermarket loan depends on various factors, including the supermarket's lending policy and your individual circumstances. Typically, supermarket loans offer borrowing amounts ranging from £500 to £25,000. Remember, it's essential to borrow only what you can comfortably afford to repay.

How much do Supermarket Loans cost?

The cost of a supermarket loan can vary depending on the supermarket and your creditworthiness. Here are a few key points to consider:

Interest Rates:

  • Supermarket loans generally have fixed interest rates, meaning they stay the same throughout the loan term.
  • The interest rate offered to you will depend on your creditworthiness and the specific supermarket's lending criteria.

Repayment Terms:

  • Supermarket loans typically have repayment terms ranging from 1 to 7 years.
  • Shorter loan terms usually mean higher monthly repayments but lower total interest costs.
  • Smaller loan amounts usually mean a higher interest rate.
  • Longer loan terms may result in lower monthly repayments but higher overall interest costs.


  • Some supermarkets may charge application fees or other administrative fees for processing your loan application.
  • It's important to review the terms and conditions of the loan carefully to understand any associated fees.

What are the Pros and Cons of Supermarket Loans?

  • Convenient Access: Supermarket loans provide an easy way to apply for a loan while shopping for groceries.
  • Flexible Borrowing Amounts: Supermarket loans typically offer a range of borrowing amounts to suit different needs.
  • Competitive Interest Rates: By comparing loan offers, you can find competitive interest rates tailored to your circumstances.
  • Limited to Partnered Supermarkets: Supermarket loans are only available through specific supermarkets, limiting your options.
  • Eligibility Criteria: Your eligibility for a supermarket loan may depend on your credit history and other factors.
  • Interest Rates: Depending on your creditworthiness, interest rates may be higher compared to other types of loans.

Are there any Alternatives to Supermarket Loans?

Yes, if supermarket loans aren't the right fit for you, there are alternative options to consider:

Personal Loans from Banks or Credit Unions:

  • Banks and credit unions offer personal loans with competitive rates and flexible terms.
  • These loans may be suitable for those who prefer a broader range of borrowing options.

Peer-to-Peer Lending Platforms:

  • Peer-to-peer lending platforms connect borrowers directly with individual lenders, often resulting in competitive rates.
  • This option may be suitable for individuals with less-than-perfect credit profiles.

Credit Cards:

  • Credit cards provide a revolving line of credit that you can use for purchases or cash advances.
  • If used responsibly, credit cards can offer flexibility and rewards.

Can I get a Supermarket Loan with Bad Credit?

Yes, it's possible to obtain a supermarket loan even if you have a poor credit profile. Supermarket loans are designed to assist individuals with varying credit histories, including those with bad credit. Alternatively, the lending panel available through Choose Wisely considers applications from individuals with different credit backgrounds, increasing the chances of finding suitable loan options.

What Documents do I need to apply for a Supermarket Loan?

The required documentation for a supermarket loan may vary based on the specific lender and your individual circumstances, and most automate the process by checking your credit report, and affordability through open banking. However, here are some common documents you may need to provide:

  • Proof of Identity: A valid passport, driver's licence, or national identity card.
  • Proof of Address: Recent utility bills, bank statements, or a tenancy agreement.
  • Proof of Income: Payslips, bank statements, or tax documents to verify your income.
  • Bank Account Details: Information about your bank account for loan disbursement and repayment purposes.

It's important to remember that Choose Wisely’s lending panel considers your overall financial situation, not just your credit score, when evaluating your loan application.

How long will I have to pay back a Supermarket Loan?

Supermarket loans typically offer repayment terms ranging from 1 to 7 years. The specific loan term available to you will depend on the lending panel's terms and your personal circumstances. Choosing a longer loan term may result in lower monthly repayments but higher overall interest costs. On the other hand, opting for a shorter loan term may lead to higher monthly repayments but lower total interest costs. Consider your budget and financial goals when selecting the loan term that works best for you.

What can I use a Supermarket Loan for?

Supermarket loans offer flexibility when it comes to how you can use the borrowed funds. Here are some common reasons people choose to take out supermarket loans:

  • Debt Consolidation: Combine multiple debts into a single loan with more manageable repayments.
  • Home Improvements: Finance renovations, repairs, or upgrades to your home.
  • Car Purchase: Use the loan to buy a new or used car.
  • Wedding Expenses: Fund your dream wedding or cover associated costs.
  • Unexpected Expenses: Handle emergency expenses or unforeseen financial circumstances.

Remember, it's important to use borrowed funds responsibly and only for necessary expenses within your means.

Will a Supermarket Loan impact my credit score?

When you apply for a supermarket loan, the lender may conduct a credit check, which could temporarily impact your credit score. However, if you make your repayments on time and in full, a supermarket loan can positively contribute to rebuilding your credit over time. Timely repayments demonstrate responsible borrowing behaviour, which lenders view favourably.

Frequently Asked Questions

Can I repay a supermarket loan early?

Yes, you can often repay a supermarket loan early, but some lenders may charge an early repayment fee. It's important to review the terms and conditions of the loan before making any decisions.

Can I apply for a supermarket loan online?

Yes, many supermarkets provide online loan application facilities for your convenience. You can apply from the comfort of your own home and complete the process quickly and easily.

Will applying for a supermarket loan affect my credit score?

When you apply for a supermarket loan, the lender may perform a credit check, which can have a temporary impact on your credit score. However, if you make your repayments on time, it can have a positive effect on your credit score in the long run.

What if I have difficulty repaying my supermarket loan?

If you experience difficulties repaying your supermarket loan, it's important to contact the lender as soon as possible. They may be able to work with you to find a solution, such as adjusting the repayment schedule or offering financial assistance.

How long does it take to receive a decision on a supermarket loan application?

The time it takes to receive a decision on a supermarket loan application can vary. In some cases, you may receive an instant decision, while others may require additional verification and take longer. The lender will provide you with an estimated timeframe for the decision.

Can I use a supermarket loan to consolidate my debts?

Yes, one of the common uses of a supermarket loan is debt consolidation. By combining multiple debts into a single loan, you can simplify your repayments and potentially save on interest charges.

What happens if I miss a repayment on my supermarket loan?

If you miss a repayment on your supermarket loan, it's important to contact the lender immediately. They can provide guidance on how to catch up on missed payments and may offer solutions to help you avoid any negative consequences.

Can I apply for a supermarket loan if I am self-employed?

Yes, many lenders consider applications from self-employed individuals. However, you may need to provide additional documentation, such as tax returns or business bank statements, to verify your income.

Are supermarket loans regulated?

Yes, supermarket loans are regulated by the Financial Conduct Authority (FCA).

Can I get a supermarket loan if I am a student or new to the country?

Yes, supermarket loans are also available to individuals who are students or new to the country. They can be a convenient option for those who have limited credit history or are new to the financial market.

Is Choose Wisely a trustworthy platform to compare supermarket loans?

Yes, Choose Wisely is a regulated and trusted financial price comparison site.

Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.

Important Information.

All of the information in this guide is correct at the time of writing.

If you complete a loan search application on the Choose Wisely website, the rates shown may vary based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 13.9%APR to a maximum of 1721%APR Representative and loan repayment periods range from 3 to 60 months.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
You can access your credit report for free from Credit Karma, Clearscore or Experian.