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.
Maximum loan
£25,000
Product fee
N/A
Early redemption fee
£0
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 13.9% 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.
| Loan amounts | From £200 to £25,000 |
|---|---|
| Loan terms | From 2 months to 5 years |
| 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 £200.00 to £25,000.00, 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 won the personal loans category in the Finder Customer Satisfaction Awards 2024. Many Monzo loans customers in our survey said the bank was easy to deal with, and an impressive 97% said they’d recommend the brand to a friend.
One respondent said:”They were very helpful, and it was a straightforward process to apply.”
Another said:”Can overpay really easily and instantly reduce monthly payments. Can see progress towards paying off loan and it’s really user friendly.”
Over on reviews platform Trustpilot, Monzo overall has a rating of 4.0 out of 5, based on more than 32,400 reviews (updated May 2024).
For any queries you can message customer support through the Monzo app. Alternatively, you can call Monzo on 0800 802 1281.
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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