Monzo has increased its loan offers - now back up to £15,000
Ouch at those rates
Them’s are not cheap loans!
Representative APRs of 25.3% for up to £7k while 7.5% above £7k. It’s noteworthy that they’re offering borrowing, but at some serious cost. For smaller amounts 0% on a credit card would be infinitely cheaper.
If they offer natty features like offsetting your balance in your account and pots against loan interest then it might make a big difference to what you pay. But unsure they’re doing anything like that from what I’ve seen - they look quite ‘conventional’.
I looked at those rates and immediately wondered if they were some sort of ‘joke’ rates.
A quick look on moneysavingexpert.com will show what sort of realistic rates are available.
“Low rate personal loan” - surely that’s misselling… What would be a high rate - 50%?!
After reading the thread on this on the other side, there’s no way I could be enthused by the rates on offer even if I were a Monzo customer. I accept that every individual has slightly different financial circumstances, but shopping around is the key. I couldn’t even justify (again if I were a customer) of applying for a loan with the bank just for the convenience of banking with them and accepting a more expensive personal loan when cheaper loans are clearly available subject to meeting the lending criteria.
It looks like some people are being offered 4.7% but that still quite a bit higher than most other banks
Well at least one Monzo customer feels it’s worth paying an extra £100 on a loan over 2 years rather than applying for a cheaper loan and not paying that extra £100.
For me, no amount of trying to justify paying a bank £100 more than I actually need to (assuming I could of course get a lower APR loan), would lead me to want to take the more expensive loan. The justification for paying the extra appears to be the convenience that taking out a Monzo loan as a customer, gives the customer easier management of ones finances. Each to their own I guess, but I’d be buggered if I’d pay more than I needed to just for the ‘convenience’ of managing the loan in App.
Does it really add convenience? Just have your loan on direct debit repayments like you’d do with a catalogue or something and suddenly it’s repaying itself at £X per month
If you’re going to spout plain financial common sense, you can bugger off else where
Some of the people from the other place reading might benefit from it
Who’d have believed that deliberately choosing to pay more for a personal loan from your bank purely for the convenience of managing it in App, would be a thing. Still trying to get my head around it, but clearly I’m totally overthinking the concept. It just goes against every grain of financial sense that my Maths teacher drilled into me 40 years ago.
If no one was willing to pay extra for convenience there’d be no milkmen (or milk persons).
I have a milkman (milk-person)!
I can’t fault you, though personally, I’ve not once used the services of a milk delivery person my entire adult life. We had a milkman throughout my entire childhood and then the supermarkets just took over. It was bad enough my free school milk got stopped!
Will personally be planning to get one soon, along with a subscription of some sort to support a fish monger if I can find one
Really sick and tired of these things going away
This trend definitely feels like it emerged through the challenger bank forum - in this case, Monzo. A sort of “we’re in the club” mentality.
Nothing wrong with wanting everything in the one place, if it makes sense, but committing to undeniably poor-value products for the sake of ease is just plain lazy. Or maybe folk consider the work involved in shopping around to find a good option just too mind-boggling.
Blimey, you can sign up to a financial product (or pretty much anything else) during the commercial break !!
Plus, if Monzo has really lived up to the hype as a financial hub, there are plenty of simple ways that could track a third-party loan in the app anyway. I mean, they could just put together a calculator