Loans

I’ve almost payed my loan off and I felt only one small option was missing:-

You currently can make extra payments to pay the complete next payment - or - reduce future payments.

What I’d have loved was the ability to reduce the next payment by paying some of it early

eg if I had 3 x £100 payments left, paying £50 would have the payments change to £50, £100, £100 (ie allocate it entirely towards the next payment so that in a good month, you can make the next month better too :slight_smile: )

Other than that it worked well and I’m impressed!

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Agree!
Or option to pay earlier … 25%/50%75% from monthly payment

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I no longer have a loan offer. Originally was £1K then went to £15K I think but now gone. Is that normal? My credit score hasn’t changed. I don’t want a loan but curious to know why the offer has gone.

I still have the option but my APR is now worse even though my credit file has not changed at all. Must be down to Monzo adjusting their criteria maybe? They’ve lost business from me at least :slight_smile: Back to shopping around.

Yeh I’m not fussed just more curiosity :face_with_monocle:

I need a loan and I don’t now how to apply can someone help me out please

If you are on the new app navigation then press the profile button on the top left. Scroll down until you see loans and overdraft and you’ll see if you are eligible

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How can I apply for loan

Like this

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Can you help me out

Do you have a monzo account? You will need to have one and have been using it for a while and have a reasonable credit history

If you have then follow my earlier instructions

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So anyone else not entitled to an overdraft but allowed a loan of multiple thousands of pounds? How is an overdraft riskier than thousands of pounds instantly? I’m not bothered as I’ll never use an overdraft, but it just seems a bit funny to me.

Opposite way round for me.

Yeah I can borrow 15k at a decent enough interest rate but only allowed a £100 overdraft. That’s a really screwy risk calculation IMO.

Yeah it says I can’t have an overdraft as my credit rating isn’t high enough (I haven’t had that much credit, likely why) but I can borrow 3K instantly. Very strange.

Agreed it seems a bit odd. I suppose that loans can only be taken out with clear repayment plans, whereas overdrafts can be taken out indefinitely, and without having any idea how you’re going to pay the money back. For that reason, loans might be seen as safer?

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Hi all! totally get the feeling of it being a bit weird being eligible for one but not the other - @daniel has given a good explanation previously which should help a bit :slight_smile:

But that’s the opposite of what is happening… they’re being more conservative on overdrafts than loans.

Our loan decisioning is using our internal model for credit risk trained for giving out loans – we are currently doing a lot of work on overdrafts to move it across to our “new platform” and use an internal model for this as well. Once this is complete many people that are not eligible for overdrafts but are eligible for loans should become eligible for overdrafts.

Basically because today overdrafts and loans are decisioned very differently there are a fair few people eligible for loans and not overdrafts (a very small proportion though). We are working to bring overdrafts across to the new platform at which point almost all of these should disappear.

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I’ve recently taken out a Monzo loan and I can see that it shows the total balance (including interest) owed. I don’t really like this feature as I would prefer to see the actual balance owed + any interest charged as of yet, rather than future interest as this can change if I pay extra. I have asked about this in the in-app chat and they said that’s how it is but I just don’t think this is a great feature.

Also, the feature where it shows you how to make monthly repayments smaller makes it seem as though the interest is fixed, and just shows how much smaller monthly repayments would be, not how much you would be saving.

Also, is interest charged monthly, and will this come up on a statement?