IOWCA why is Monzo offering 60% per annum loans? Is that really market rates?


I have a business account with Monzo, and I was looking at the business loans available.

I saw iowca would lend up to 10% of my turn over, this seemed helpful.

I saw 5% , and very nearly went for it. Luckily something slowed me down but I honestly miss read it as a 5% pa loan - seemed super cheap.

Then on a revisit I saw its 60% PA … 5% a month.

I view Monzo as a friendly bank - but this is a savagely high rate. I got a number of calls on follow up emails trying to get me to take the loan.

Is this really what Monzo wants to be associated with , is this what market rates are for unsecured loan to a limited company. 60%?

I’d love to hear some context on this - feels like Monzo may have chosen the wrong partner here.


Have you complained to monzo directly? Not a public forum?

He’s starting a conversation. That’s allowed on a public forum, yeah?


its not really a complaint, if that’s market rates then it is fair.

Market rates are market rates.

If its not market rates , the what on earth are they doing…

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Wind it in.

It’s a gripe, and sounds complaint language, therefore asking if they’ve complained is reasonable instead of deaf ears on a public forum.

I think this is a fair enough question to ask as a business owner who may actually want to use the product. Interested to know Monzos pov.


I think personal loans also offer third party if you’re not eligible for monzo, and Bamboo loans is one of the options which has high apr up to ~69.9%

So really doesn’t surprise me business get the same experience.

Did you do any research as to what the market rate is, whether Monzo is competitive or were you just going to press yes and accept with Monzo?

carlo, why the agg?

Assume you are a passionate share holder? Defending your treasured shares?

Am absolutely amazed personal and biz loans are at 60% … Wonga is back.

latter … know enough that 5% is fine.

I think 60% is punchy what ever world you live in.

Don’t have access to data on unsecured Limited company lending, I assume with not PG.

Hence opening it up to the floor.

But even if it was 5%, did you not want to research and see if it was 4% somewhere else?


no frankly 5% is fine for me for the easy of doing on a few clicks and not spending time on research , plus I frankly trust monzo to not scalp me - sort of why i’m expressing my suprise.