Loans

(Ben ) #43

Well Monzo aren’t trying to be a long term, high value loan provider - I think thats my key take away from this.

While yes, they do have a high APR if you compare to a £8k + loan at 2.8%, you generally can’t find a loan for £200 - £1000, between 3 and 12 months for similar rates.

Credit Card deals, yes, but generally I can see few providers of loans of <£1000 on the market.

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((╯°□°)╯︵ ┻━┻) #44

I’m sure I read somewhere that Monzo are planning on increasing the loan amount to £7k soon? and that’s before it has been rolled out to everyone.

I would assume that their goal is to offer a full range of loans through various providers, in their marketplace vision of the future :crystal_ball:

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(Peter Shillito) #45

Oh wow. I swiped to the side to see if the loans thing was there and my app crashed and logged me out entirely and lost a bunch of settings :sob:

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#46

Where do you see this?

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#47

From the Making Monzo section in the app:

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#48

Interesting :face_with_monocle: thanks for that :+1:

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#49

The Making Monzo part of the app is pretty janky :neutral_face: At least on the latest Android beta. The cards overlap the top tabs. Back button just exits the entire Making Monzo section, the images are annoyingly big and there’s no header. I know it’s just a section for feature updates but it’s pretty bland and not very exciting.

I like that they’re giving updates through it now though!

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#50

I think we’re overdue an update about loans

It seems only a small proportion of users have access still…

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#51

I have a £650 loan and it’s all run smoothly. Made a couple of extra payments they all worked well. It’s basic and simple process but I think that was the intention as it makes it easy to understand- so all good.

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#52

Still no update on loans?

CC @cookywook

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(Richard Cook) #53

Hey all, sorry that we’ve left you hanging without an update for a while. Here’s the latest on loans! :moneybag:

  1. We want to take away the guess work for you about if and how much you’re eligible for. Our goal this quarter is to go through our userbase and make everyone a personal offer if we can, and let you know if you’re not eligible.

  2. We are working on offering bigger loans up to £7K this quarter. Since loan offers are personal and subject to affordability - we’ll build a way for you to check what you’re eligible for at any time.

If you’ve taken out a loan from Monzo, we’d love to hear your feedback below. Or, if you’ve considered a loan but didn’t end up taking it out, we’d love to know why. And what are the key things you look in lenders?

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#54

Great stuff, thanks for the detailed update :+1::+1::+1:

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(Simon) #55

HI

Sounds great.
Found loans simple and easy to manage.
Only two things that I would add.

  1. The ability to choose whether you pay of the next month early or the option to pay the last month - making the term shorter.
  2. The ability to exclude a loan payment from the monthly budget summary (this currently can’t be done)
    Otherwise it’s great. Love how easy it is to see interest reduced etc.
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#56

Took out a loan £650 and no problems, apart from finding it hard to work out how to apply had to contact support and they then told me to swipe right from the account screen.
I would recommend making it easier to find the loan area to save people contacting support.
Apart from that nice and simple

Would be interested in taking out a larger loan when available max was £1000

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(Rob) #57

Just been offered a loan at 20.6% APR to reach my pot goal sooner… not sure what to make of this, it doesn’t seem very friendly, and on the face of it I’m not sure a ‘loan to save’ offers any value other than than a cynical approach to make your money work for Monzo.

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(Fin) #58

Yeah - this is really bad. I get Monzo need to make money but the attraction is they don’t fling you banking products willy nilly to make them money like everyone else. Monzo are going to lose all their appeal if they do stuff like this - please stop it.

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(Simon) #59

I don’t think it’s a good idea. I see monzo loans as emergency use not as a holiday booster

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(Rob) #60

If they want to make 20% on interest they may as well offer a credit card instead of these high interest micro loans.

I worry that in Monzo quest to be a real bank, they start to behave like a legacy bank and then lose the trust of their customers. I remember when a new startup had a moto of ‘do no evil’ then made it big and that moto seemed to go out the window.

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(Tony, Secret Lemonade Drinker) #61

I have a number of pots for things with a specific end date in mind, but it’s conceivable that I won’t achieve them all, or that the eventual cost might be higher than expected, in which case I might get a Monzo loan for the short term to bridge the gap.

I have no objection to them highlighting the option here, I’m under no obligation to take out the loan after all (and it appears dismissable anyway).

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#62

I’m not one to take the moral high ground, and I generally prefer the responsibility to be with the person, not the company… But… I hate this.

With people seemingly looking to “gamify” things in their life, I can see a lot of people looking to “complete” their Pot Goal by taking out a loan (at a bad APR rate).

I just don’t think it’s needed? Not for a Pot Goal surely?

This is where a short term loan can come in useful - But that implies your Pots (and associated goals) are for specific purposes where you actually NEED the money - Rather than using Pots to ring fence a rainy day fund, or simply removing the money from your main account.

But even still… I just don’t like the idea that people will end up taking a loan out to “complete” their Pot Goal quicker…

If people need the money, the loan option is there for all to see without it being an advert within your Pot.

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