Monzo Moves into UK Personal Loans Market
Challenger bank Monzo has annouced today that they are offering personal loans. Following testing on their mobile banking app over recent months, customers can now check their eligibility for lending from their phone.
In a blog post, the UK based fintech announced lending will be available for GB£200 - GB£15,000 (US$242 - US$18,160) payable over up to five years. The bank says, "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."
Rather than needing a new credit check to make an application and confirm the interest rate, Monzo will use existing credit referencing information to set rates. The borrowing can be controlled through the app, payment dates can be changed and overpayments without charges are possible.
Monzo was founded in 2015 as a prepaid debit card operated through a mobile app. By 2017 they were granted a banking license to offer current accounts and have been working on offering lending for the last nine months.