Revolut has launched a personal loan product offering borrowers between £2,000 and £25,000 at rates starting from 6.9 per cent representative annual percentage rate. The 6.9 per cent rate applies to loans of between £7,500 and £25,000, which is the rate the lender will offer to at least 51 per cent of applicants. Revolut said that representative rates can reach as high as 29.3 per cent, with the actual rate depending on the amount borrowed and the applicant's financial situation.
Borrowers can repay over between one and five years with no charges for settling the loan early. The product marks Revolut's first entry into offering credit since becoming a licensed UK bank. Francesca Carlesi, chief executive of Revolut UK, said the move allows customers to 'see exactly how their repayments fit alongside their day-to-day budgeting, spending and investing all in one place'. The loan is managed entirely through the Revolut app alongside other accounts.
The rollout is happening in phases over several months and is currently only available to a small number of customers. To qualify, customers must have opened their Revolut bank account more than 30 days ago. The rate compares slightly higher than some established providers but more favourably than rival Monzo, which offers a representative APR of 23 per cent on loans up to £10,000. The AA and M&S Bank offer rates of 5.9 per cent on £7,500 loans repaid over three years.
For Revolut's existing customers, the personal loan option provides another financial service within their existing account, though the product remains unavailable to most users during the phased launch.