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.
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 14.8% APR representative on loans between £10,000 and £25,000. Monzo offers the loan with repayment terms between 2 and 5 years, and applicants can apply to borrow from £200 to £25,000.
Representative APR | 14.8% |
---|---|
Loan terms | From 2 months to 5 years |
Loan amounts | From £200 to £25,000 |
Age eligibility | 18 years and over |
Application fee | No application fee |
Repayment holiday | Repayment holiday not permitted |
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 £25,000.00 |
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 has received positive reviews from customers, according to review platform Trustpilot. It currently has a rating of 4.3 out of 5, based on more than 27,000 reviews (updated June 2023).
Monzo was also the winner of Finder’s 2021 customer satisfaction awards for banking. For the 2022 awards, Monzo maintained high ratings with a score of 5 stars out of 5 and 84% of Monzo customers also said they would recommend the brand to a friend.
For any queries you can message customer support through the Monzo app. Alternatively, you can call Monzo on 0800 802 1281.
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 considers. 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, 531 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 information 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 2 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.
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