Anyone got monzo loan?

Anyone got a monzo loan? Just noticed in app now eligible for up to £7500, just curious as would be a option for changing car at some stage, not best rate but not bad compared to car finance.any info be great, searched around forum but not a lot of recent chat, can loan be paid from bills pot etc?

No it doesn’t come out a bills pot, just straight out your main account. You can pay extra off as and when you feel like it.

Edit - also take note that you could look again on Monday to find the loan isn’t on offer anymore. It’s like a wheel of chance sometimes, will it still be there when you want it. Nobody knows

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It’s first time I’ve saw it available to be honest and was curious, I had thought of funding next car with a 0% credit card, just option to keep in mind for now……if available when I want it as you say lol if you pay extra off at anytime does that mean less interest? Or is it just fee free to pay extra off?

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From memory it mainly reduces the monthly amount you’ll pay over the rest of the term. I think the interest would only be less if you decided to go for a full settlement.

So if I make an additional payment today for X amount it’ll then show a payments schedule showing all the remaining monthly payments are £0.14 less.

Thanks so loan term length doesn’t change unless full settlement. So if in my case I went for £7500 at cheaper rate but only wanted £5000, I could pay back £2500 early and sort of have a £5000 loan at cheaper rate?

Sorry I could have confused myself there even, think you meant same interest still be paid even if extra payment made.

The monthly payments would just be reduced over whatever the term of the loan is. You can see from my screenshot what my usual monthly payments were, then you can see where I paid a bit extra off, then what the new monthly payments arewhich started to be taken

I wouldn’t ever advise to take out a loan of more than what I needed in the 1st place. I’m sure you won’t do that, but just in case work out what you need and then only apply for that.


Thanks for sharing screenshot that explains it well, wouldn’t be any benefit in borrowing extra to get lower rate I think with way repayments are calculated. So interest calculated at start and you pay it all back by look of it regardless of extra payments. Is great option of paying bit extra here and there, seems decent product in my opinion.

This is not correct. If you make an overpayment you no longer pay interest on that amount.

I’ve been a bit of a loan junkie over the last 10 years and have had them with loads of banks. Monzo is by far the best experience for transparency and ease of use.

They show you your payment schedule and the amount you’ll pay back if you pay as scheduled (ie. that nasty amount with all the future interest added), how much your actual balance is at the moment (ie. without including future interest accrual) and there are tools to calculate what will happen to future payments and total amount owed if you make an overpayment.

With all the other banks i’ve had loans from it feels like you are their b*tch (pardon my french, but that’s the most honest way I could describe it) now that you’ve signed the agreement and owe them loads of money. They purposely hide things like the total amount owed currently and they have it set up so that you pay massive charges if you settle early. They also force you to call the call centre if you want to understand exactly how much it will cost to settle the loan or you want to know how much you can reduce future payments or interest by if you overpay, whereas with Monzo it’s all in the app and very clear. They also have no settlement fees to screw you over with for leaving them.


I stand corrected, thanks for all the info. Even better offering from monzo than first thought then

Wasn’t there a point where you could take a Monzo loan for more money to get a lower APR. Then just repay the extra back straight away?


Yep, that’s what I did. Getting the extra more than halved the APR. Paid the extra back straight away


I love having everything together but I would carefully think about how much/if you intend to pay off extra with a Monzo loan and if that flexibility is worth it for the higher interest rate.

If you’re going to just pay it off as the usual amounts, I’d go elsewhere and then you can also pay it from a pot.

If for instance the external loan is £150 per month, you could put £175 in that pot and then near the end (I’m not doing the maths) you’ll have months x £25 in there as extra and you could pay it off early. This also has the added benefit of if you needed that extra money for something, you can still use it. But it won’t reduce the interest costs obviously.


I’ve found Zopa to be similarly clear with their loans and overpayments including making it easy to overpay and how much is left to pay our fully settle the loan. Though both Monzo and Zopa sound as though they are an exception to the rest of the industry.

The but that about me the most is Zopa pulling out of the peer to peer investments.

One of the reasons for going for a Zopa loan was the noticeably lower interest rate compared to the Monzo one at the time I took it out.

Great idea putting extra into pot.

Monzo loan is quite expensive…I’m not sure I’d want to get it for anything I wasn’t paying off in 2-3 months.,but it came in handy when I needed some money fairly quickly.

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Check other options first. Monzo loan is very expensive. If you are eligible for Monzo loan most likely you will be accepted for 2.8-2.9 APR (£7500+) loans from other lenders

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