Revolut Launches Personal Loans in UK Market

Revolut has introduced its first personal loan offering in the United Kingdom, allowing customers to borrow between £2,000 and £25,000. The introductory representative Annual Percentage Rate (APR) starts at 6.9% for loans between £7,500 and £25,000. A representative APR is the rate offered to at least 51% of applicants, and Revolut states that actual rates can go up to 29.3%, depending on the borrower's financial standing and loan amount.

Borrowers have the flexibility to repay the loan over one to five years, with no fees for early repayment. This launch signifies Revolut's expansion into credit offerings as a licensed UK bank. Francesca Carlesi, CEO of Revolut UK, highlighted the integration of loans within the Revolut app, allowing users to manage repayments alongside their daily budgeting, spending, and investments.

The personal loan is being rolled out in phases and is currently available to a limited number of existing customers who opened their Revolut account more than 30 days prior. Eligible customers can apply directly through the app.

Before applying, customers can check their eligibility using a soft search, which does not impact their credit history. Approved loans are typically disbursed into the Revolut account within minutes. Applicants must be at least 18 years old and a UK resident.

Revolut's starting rate of 6.9% APR on larger loans is slightly higher than some competitors. For instance, rates as low as 5.9% APR on £7,500 loans over three years are available through providers like the AA and M&S Bank. However, Revolut's offering is competitive when compared to other challenger banks, such as Monzo, which offers a representative APR of 23% on loans up to £10,000.