UK challenger bank Monzo announced on Thursday the launch of its flexible loans. The startup reported that over the past nine months it has gradually been offering loans to more and more of its customers to make sure its system was to “get it right.”
“If you’re eligible, you can now borrow between £200 and £15,000 from Monzo for up to 60 months. We offer rates from 3.7% APR representative on loans of £7,500 to £15,000, to 20.4% APR representative on loans up to £7,500. A representative example doesn’t apply to everyone, but is a guide we have to include that shows what most people can expect. When you explore a loan with Monzo, we’ll tell you the exact rate you’ll pay before you apply. We want to fix problems across the industry, like the general lack of transparency, confusing terms and pricing, and business models seemingly designed to catch customers out. Here’s how we’re trying to do things differently.”
Monzo also reported that it has built systems that check if customers can borrow money and how much it can responsibly lend. Monzo notably matches its data with that from credit agencies to see if it can offer customers a loan.
“We want you to feel in control of your loan the whole way through. We’ve designed our loans so that checking your balance, making extra repayments, and paying off your loan in full is as intuitive as the rest of Monzo.”
Perks of borrowing from Monzo include the following:
- Monzo won’t penalize customers to make extra repayments, or pay off their loan early, anytime
- Set and change customer repayment date to suit their schedule
- Talk to us 24/7 – chat and phone support to help along the way, if customers need it
Monzo went on to add:
“Paying off your loan feels pretty good, so we celebrate when you do. And if your circumstances change, or things don’t go to plan, you can chat with us anytime. We have a dedicated team here to support you and make sure you get the help you need.”