Improving the way you repay loans

We’ve been testing loans with a few hundred people, and we’ve already got lots of useful feedback. We’ve been using it to improve the experience if you want to repay your loan early. If you start testing loans now, you’ll see the improvements already.

We’ve made early repayments more flexible

In the first version of loans, when you made an early repayment we took it off the end of your loan. So you’d still have to make your upcoming payments as usual, we’d just remove the amount you paid early from your final payment.

But people told us they wanted more flexibility, so early repayments could lower all their future payments, or replace their next payment (not their final one). We’ve added those options into the next versions of loans.


We show you how repaying early affects your interest and future payments

We didn’t show you how early repayments affect the amount of interest you’ll pay overall, or the size of any future payments.

Instead, we now show you how making an early repayment has changed your upcoming payments and reduced the amount of interest you’ll pay.


We’ll remind you when we’re going to take a repayment

Because we take repayments out of your account automatically, you told us reminders would help you prepare and make sure there’s enough money to cover the payment.

We now show you tomorrow’s repayment at the top of your transaction feed. And if you don’t have enough money in your account to cover the repayment, we’ll send you a notification to remind you and let you know how much you need to add.


When you miss a payment, we make it clear how you can get back on track

If you missed a payment in the past, you weren’t sure what to do to get back on track.

Now, if you don’t have enough money in your account and your payment’s declined, you can tap a button to see how much you need to add to your account and make the repayment late. And we’ll tell you how much extra interest you’ll pay for missing a payment.


Stay tuned for updates!


Although I probably won’t use the feature myself, it’s looking very nice and intuitive!


This looks pretty cool, I weirdly want a loan to play around with lol


Looking snazzy :heart_eyes:

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Looks great!

Given I’m not eligible for an overdraft I’m highly likely never to get one but I have a current loan with Halifax and I can clearly see a massive difference - in a good way. Well done.

Small typo in the text:

Because take repayments out of your account automatically,


Thanks, @Peter_G

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Looks like a decent set up. The reduce future payment amount is a good feature that I wish mortgages offered. Wonder how long until Barclays copies this!

Personally I probably won’t be using a Monzo loan until sensible interest rates are offered, from what I’ve read the rates are very high and seem to be aimed at the payday loan market.

Would it be possible to put the monthly loan payment as part of the “Committed Spending” portion of the Summary screen?


My Santander mortgage allows me to overpay 10% each year and then reduce the monthly payments or keep them the same and pay it off quicker.


Any update on when loans are being rolled out to more people?

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I was offered a loan and duly accepted - I was on holiday at the time and needed to bridge the gap between paydays. My experience has been nothing but positive. It was instant, clear & easy, intuitive and transparent. The fees are reasonable imo too.

Good job Monzo :+1:.


Just took out a small loan to pay off some credit card debt, as I realised Monzo’s APR was actually lower than what I was paying on the credit card. I am seriously impressed by the way you’ve implemented this feature. I’ve spread the repayments over 3 months and I love how transparent you’ve made the whole process, especially the way that I can make overpayments and immediately see exactly how much my future repayments and interest will go down as a result (this is a great motivator to get it paid off quicker!). This makes me feel far more in control of the debt than I did when it was on the credit card, and it has really removed any anxiety I had surrounding it. Well done Monzo!


Congrats. Sounds like you’ve used Monzo’s flexible loan feature to great advantage.

Don’t forget to check your credit card statement next month. Depending on how long you’ve had an outstanding balance, there’ll be some trailing interest payable which you’ll want to clear.


Where is the loan feature? It’s not in my app

It’s not rolled out to all customers yet or you may not be eligible. A good indicator of eligility seems to be if you’ve been offered an overdraft.

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The loan feature is great, simple user interface. Can’t praise it enough

Still waiting to hear when this is being rolled out further

Have a 1k overdraft :man_shrugging:

Does anyone have a clear chart of interest rates for the loans?


It would be nice if people who don’t have a great credit history but do have proof that they have been managing there account and paying money in should be given an option for smaller overdrafts or loans