Revolut has introduced personal loans in the UK, offering between £2,000 and £25,000 with repayment terms of one to five years, as the digital bank moves into lending after securing its full UK banking licence.
The company announced on Monday that loans will feature "transparent terms" and that funds will be transferred within "minutes" once approved. Interest rates range from 6.9 per cent to 29.3 per cent APR.
Simple loan process
Francesca Carlesi, chief executive of Revolut UK, 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."
Carlesi noted that adding credit to the platform would let customers benefit from an "all in one place" experience, extending Revolut beyond its core payment services into direct competition with established lenders.
Banking licence expansion
Founded in 2015, Revolut has grown its portfolio across lifestyle and payment solutions. Earlier this year the firm obtained its full UK banking licence after a four-year application process, enabling it to enter the higher-risk lending sector.
Carlesi told Reuters the firm plans to eventually enter the UK's mortgage market, where Lloyds Banking Group currently holds roughly a fifth of the market share. Competitors include Natwest, Santander, Barclays and Nationwide.
Market position
Revolut, which counts 80 million customers globally and 13 million in the UK, reported a 57 per cent jump in group-wide profit to £1.7 billion in its most recent financial year, driven by expansion across subscriptions, payments and wealth. Subscriptions recorded the strongest year-on-year revenue rise at 67 per cent to £708 million.
Revenue per customer has stayed below competitors as the company works to persuade users to adopt the service as their main bank. Founder Nik Storonsky said in March following the licence approval that launching the UK bank had been a "long-term strategic priority.. and marks a significant moment in our journey".
