On iOS though I can’t see a way 
1 Like
Are loans for under a year a new thing with Starling? Can’t see them mentioned anywhere
I looked today and starling are 12/18/24 for loan terms. For me anyway.
12-60 months in 6 month intervals, though you can pay back at any time.
I was offered a loan of up to £1000 today.
I’m sorry but I really can’t get over the interest. 20.6%? I can’t understand why, unless you were completely desperate, you would take out a loan at that rate? Just seems so bizarre and really goes against what Monzo is as a brand in my mind.
8 Likes
20.6% really?! I’m not eligible for a loan or overdraft(no idea why) I don’t need one anyway. But I thought Monzo was meant to be helping people save money…
1 Like
Just to clarify for everyone here at 20.4% Apr, you’d pay back £31.24 in interest if you took £1000 loan with Monzo over 3 months, I don’t think that’s so bad when the figures are written out. (Just under £105 in interest over 12 months). You’ll definitely save money with Starling, but their lending criteria is a little stingier in my case so I can’t check everything like for like.
The problem with short term loans is you have to bump up the APR to make loaning the money (and covering the risk) worthwhile.
I guess the TLDR is If Monzo or Wonga (et al) is your only option, take the Monzo deal all day. If you’re on firmer financial footing, then shop around and take the best deal you can get.
4 Likes
Monzo doesn’t seem to be differentiating enough between applicants if everyone is getting a similar rate, so they’re missing out on solid customers.
Why?
1 Like
I think it’s because they don’t want to hard search everyone.
I’m not 100% sure why though. I agree there’s definitely need for a tailored option, but the implementation is beyond me!
2 Likes
I wrote my dissertation on payday lenders…it was an uncomfortable defence of them. About a week after I handed it in Wonga were found to be sending fake solicitor letters and forcibly taking money from people…
Doh.
5 Likes
An old comment but still relevant and the comments before Why we’re lending
That’s probably a very interesting read, what exactly was it on?
1 Like
Essentially on how the alternative was much worse. Loan sharks, gangsters, money laundering and unregulated debt or things like children not eating, homelessness and repossession etc.
Was a good opportunity for the government to collar a segment of the market and decriminalise and properly regulate it. Unfortunately Stella Creasy and peers saw it as opportunistic and worked tirelessly to shut it down. It was an easy headline, an easy political point score.
Hence we return back to the loan sharks, gangsters, money launderers and unregulated debt etc.
4 Likes
Do you have a copy of it that’s easy accessible? As it sounds very interesting( Also a good way to educate myself on the issue)
Sadly I don’t!
The last copy I had was on my portable hard drive which I reformatted on accident about 8 weeks ago!
2 Likes
1 Like
If they wanted to be competitive and offer small loans to people why not offer close to the banking rate that sits around 13%? Instead there offering loans to people, apparently with less strict checks, at double the interest offered by other banks.
It seems like Monzo are very happy to take advantage of people who might need this under the guise of ‘helping people’
Or going to your bank (say santander) and getting a loan at 13% with a much easier payment length.
I’m not defending the APR just explaining the figures.
If you read @Rat_au_van link it seems Tom doesn’t want to be the most competitive.
3 Likes