Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Updated
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Monzo is one of the leading challenger banks in the UK and now offers personal loans through its popular app. Unlike traditional lenders, Monzo loans are online-only and you’ll need to create a Monzo account and download the app to apply for a loan.
The Monzo Bank Personal Loan charges 26.6% APR representative on loans between £200 and £3,000. Monzo offers the loan with repayment terms between 2 and 5 years and applicants can apply to borrow from £200 to £3,000.
Monzo offers unsecured loans, which means you don’t need to use an asset as security against the loan. Instead, you’ll be approved for a loan based on your credit score and ability to pay back the loan amount. You can borrow from £200 up to £15,000, with a loan period of 2 to 5 years.
You’ll receive a fixed interest rate, so your monthly payments will remain the same throughout the loan and you’ll know in advance what it will cost overall. Your rate will vary depending on factors like your credit history and the loan that you apply for. Before it can offer you a loan, Monzo will check your credit history through the credit reference agency Transunion.
Loan type | Unsecured Personal Loan |
---|---|
Loan amounts | £200.00 to £3,000.00 |
Loan terms | 2 Years to 5 Years |
Loan rate type | Fixed |
Product fee | 0% |
Same day funding available | |
Instant decisions in most cases | |
Soft-search facility available | |
Joint applications | |
Overpay without penalty | |
Concurrent loans allowed | |
Topping-up pays off existing loan and initiates a new loan | |
Repayment methods | Direct Debit |
You’ll need to be an existing customer and already have the app. Here’s the typical process for taking out and repaying a Monzo loan:
Monzo will then take automatic monthly payments from your current account in order to repay the loan. You can track how much you’ve paid, your remaining payments and the cost of the loan using the Monzo app.
The Annual Percentage Rate (APR) is a representative figure that’s designed to show you the annual cost of a loan. It can be a handy tool when comparing different loans, but don’t let it distract you from the overall cost. The APR combines both the interest rate and any mandatory fees or charges that you’ll need to pay on the loan.
Lenders such as Monzo must all calculate their APRs in the same way and must provide you with this figure before you agree to anything. However, most people don’t realise that lenders only have to offer the advertised representative APR to 51% of customers who take out the loan. That means you may end up paying more, depending on Monzo’s assessment of your financial circumstances and history.
You’ll need to meet the following criteria to be eligible for a Monzo personal loan:
Monzo typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Monzo will consider, however if you don't have a high credit score, you're very unlikely to get approved for a Monzo loan.
A "Good" or "Excellent" credit rating would require a score of 881 or higher, if you're referring to Experian's scale, 420 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.
Yes, Monzo offers instant decisions online in most cases (occasionally more info may be required). First, you can use the soft search eligibility checker to find out your chances of getting approved (this won't affect your credit score). Then, if you opt to go ahead and apply, you'll get an instant answer. Monzo can also offer same-day funding of your loan.
Monzo doesn't allow you to run multiple loans at the same time.
Yes, you can make overpayments without incurring any penalty fee. However Monzo can continue to charge interest for up to two months on any sums overpaid, so although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
Finder.com has selected Accepty Technology Ltd to provide details of credit products and whether you may be eligible to get them. Accepty Technology Ltd is authorised and regulated by the Financial Conduct Authority (FRN: 839295). Accepty is acting as a credit broker, not a lender, and may receive a payment from a credit provider if you take out a credit product.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
Earn Avios or cashback on all your business spending with this business Visa from challenger Capital on Tap.
Saving time on expense reports and streamlining your cash flow are just a couple of the many perks you could enjoy with a business credit card. Compare interest rates and check your eligibility today.
In-depth guide to bridging loans if you have had credit problems in the past, including what lenders are willing to overlook and which are the most important factors.
In-depth guide to closed and open bridging loans, including what they are useful for, the differences in cost and the application process, and the pros and cons of each.
Discover the key differences between the Tide and Monzo business bank accounts and which might suit you better.
We compare the key differences between Starling and Monzo business bank accounts, so you can choose the best option for you.
If you find yourself unable to work, a loan protection insurance policy will pay out monthly benefits straight to your bank account.
Despite its questionable past, PPI can help protect you financially if you lose your income and are unable to make repayments on loans.
0% purchase credit cards can help cover the cost of large purchases or expenses, and are often cheaper than a personal loan.
If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.