Revolut launches personal loans in UK

The digital bank announced on Monday it will start providing unsecured personal loans ranging from £2,000 to £25,000, with rates of 6.9% to 29.3%, and repayment terms spanning one to five years, according to Reuters.

The company has pledged the loans will feature „transparent terms” with funds transferred within „minutes” once approved.

„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,” Francesca Carlesi, chief executive of Revolut UK, said.

Carlesi noted that incorporating credit into the platform’s offering would enable customers to benefit from an „all in one place” experience. „We want to transition from being a very successful everyday spending app and ​disrupting the market, to become effectively the primary bank of choice for everybody in the UK,” ⁠Carlesi said.

Revolut will initially take a cautious approach, offering loans to a selected group of customers and expanding to its ​14 million customers in Britain ​over the coming months.

The bank will eventually look to offload much of its risk via securitisation, aiming to keep its loan-to-deposit ratio close to 6%, ⁠far lower ​than other banks, she said. Carlesi said Revolut also eventually plans to enter ​the highly competitive market for mortgages in Britain.