Tesco exits personal loans market

The move is an indication of how more loan defaults, caused by the difficult economic conditions, are affecting loan providers.

 Tesco currently has 3,600 personal
loans on its books with an average value of €9,500. All existing
customers will continue to be serviced by Ulster Bank, and it is
assuring customers that they will continue to get the same rate of
interest.

Tesco has been known to provide one of
the lowest rates of interest on personal loans since it launched the
product in 2004.

Tesco Personal Finance says the halt is
temporary, and it expects to be in a position to come back to the
personal loan market in the near future.

Other financial products – including
credit cards, car insurance and life insurance – are still available
from Tesco, and new products could be launched later this year.