Monzo Loan management

UK Feedback & Ideas
1

Hi
I currently have a small loan and Happy that you can pay a little off early and payments before the pay date.
Making loans as flexible are key to why I choose this on my account.
I would like to suggest another flexibility for consideration.
An option to pay a particular month off ie I have been making both extra and early monthly payments but would like the facility to to pay the last payment date which would effectively shorten the loan term.
Hope this is of interest to you
VBR

2

I have never had a Monzo loan so I don’t know exactly how it works but surely if you’re paying off extra then it will shorten it anyway?

If you borrow £1200 over 12 months and pay off £100 a month, then if you pay off an extra £100 during that, then you won’t need the extra month?

(Interest ignored for sake of ease)

3

It reduces the remaining payments rather than reducing the loan length

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4

That’s how the one I use with Currys works, their finance partner allows you to either reduce the amount or reduce the term.

I’ve not paid any extra off on my Monzo loan just yet, but probably start that half way through 2021. I’ll just have to increase my manual payments on a monthly basis, to counteract the reduced payment they take because of additional payments.

5

Just encountered this too.

I made a big overpayment to my loan, but the monthly payments have dropped really low.

I want the option to keep my current monthly payments and pay off the loan sooner.

Is this a potential feature Monzo?

It would be great to be able to vary monthly payment amount, or alternatively end date, and potentially to be able to make changes frequently, with caveats about minimum payments/max terms.

I can just make overpayments each month to do the same thing, but it’s a faff, and seems like a simple gap to fill

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6

FYI: same conversation happened here: Loan Repayment Option

Seems that I’m alone in this opinion, but it feels risky in the world of FSA fines that Monzo does not offer the option to shorten the loan term and opts to default the user into paying more interest.

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