John Lewis shoppers will be able to take out loans of up to £35,000 for home renovations, holidays and even wedding expenses as part of a new partnership with digital bank Zopa. .
The company is growing its financial division, John Lewis Money, as other chains cut back on banking operations.
Customers can already purchase credit cards, insurance and travel payments as part of a spin-off by the retailer, which operates 34 department stores across the UK.
With this expansion, people will be able to get a personal loan from Zopa in up to two hours and use it for things like home upgrades, new cars, and big events like holidays and weddings.
Customers can get a quote in three minutes without impacting their credit score and have access to funds as soon as their loan is approved, the companies said.
The loans offered range from £1,000 to £35,000, with terms ranging from one to seven years, and borrowers are charged an annual percentage rate (APR) of 9.9%.
Tesco has agreed to sell its banking business to Barclays to focus on retail sales (Andrew Milligan/PA)
The new deal comes as many major retailers have downsized or cut their banking departments to sharpen their focus on retail operations.
Earlier this year, Barclays announced it had agreed to buy Tesco Bank’s retail banking business for £600m. This means Tesco Bank will take control of Tesco Bank’s credit cards, loans and savings.
Sainsbury’s also struck a deal to sell the majority of its banking business to NatWest, after announcing it would downsize the division to focus on food sales.
Andy Piggott, director of credit and banking at John Lewis Money, said the company was “really excited about this next stage” and said the company is “really excited about this next stage”, adding that customers are “renovating a home, buying a car or “We will make it available for funding.” A trip of a lifetime.”
Founded four years ago, Zopa Bank has more than 1 million customers with products such as loans, credit cards and car finance, and plans to open checking accounts early next year.
