Mobile-only bank Monzo have now opened up their loans product to everyone who is eligible.
Monzo loan features
Over recent months they have been gradually user testing it with select customers and believe they now have a solid offering. Here are the main features of Monzo's loan product:
- Qualified customers can borrow between £200 and £15,000 over a repayment period of up to 5 years
- No penalties for making additional repayments or paying your loan off early
- Change your repayment date to your personal
- A 24/7 chat facility and telephone helpline support
Monzo Loan Interest Rates
For loans up to £7,500 they charge up to 20.4% APR and a much more competitive rate of 3.7% APR for amounts between £7,500 and £15,000. The exact rate will depend on your specific circumstances and they promise to inform you of this before you apply.
How does it work?
Monzo say that their systems are able to check if you're eligible right away and whether or not you present a good risk for them.
They combine their own information on you with credit reference agencies in order to come up with a personalised interest rate that importantly does not leave a trail on your credit report.
To access the Monzo loan product and to see if you're eligible, open the app, navigate to your Account and tap 'Loans and overdrafts'.
Monzo lending principles
Monzo state that they are committed to lending responsibly and to illustrate this they have documented 5 core lending principles:
- Responsible: we’ll make sure you can afford to borrow money from us
- Transparent: we’re open about whether you can borrow from us, and how much it’ll cost you
- Clear: we communicate in plain English
- Fair: we won’t sting you with hidden fees
- Compassionate: we’re here 24/7 if you want to chat to us
As always with Monzo, they love to get feedback and ideas from their customers and have encouraged people to head over to their community form to share their thoughts on the new offering.