Revolut has started offering personal loans to UK customers, marking its first credit product since securing a full banking licence and positioning it against high street rivals.
The unsecured loans range between £2,000 and £25,000 and offer “near-instant” funds after approval, with rates between 6.9% and 29.3% APR.
From banking licence to credit products
Revolut first applied to become a full bank five years ago and faced a lengthy wait for approval from UK regulators. It began offering bank accounts for retail and business customers after securing a licence, with restrictions, in 2014, and has aimed to roll out a wider array of banking services.
Loans are already offered in some other countries, but the UK launch brings the product to its home market, where it has about 14 million customers.
How the loans work
Funds are typically transferred within minutes on approval, and customers can apply for and manage repayments through the Revolut app. The product is currently available to a small number of select customers and will be rolled out in phases over several months, according to the firm.
The company plans to launch a credit card product in the near future and eventually enter the market for mortgages in Britain, according to reporting in Reuters.
UK chief executive Francesca Carlesi said: “UK consumers can face unnecessary friction and complex fee structures when borrowing.
“We’ve built a transparent and simple loan process with near-instant funds on approval, no fee for early repayment and competitive rates.
“Plus, by bringing credit into the Revolut ecosystem, customers can see exactly how their repayments fit alongside their day-to-day budgeting, spending and investing all in one place.”
