Yesterday I received 3 prompts from Monzo asking me to “See if you’re eligible” for a loan; a regular application notification, an in-app message (dismissable), and an email.
Okay, quite fortuitous I think, if a bit full-on; I’m considering getting a new car, and I’d prefer the option to overpay or pay off early (which usually is not an option with car HP). I give it a go. Input my details. Go through all the rigmarole, and suggest an amount of £15K to see how that compares.
I am offered a loan of: £200.
Yes, TWO HUNDRED. POUNDS.
What in the name of Anthea Turner’s white glove is this nonsense?
It’s taken me a day to calm down enough to post on here about it.
Okay sorry but I’m with the OP here. £200 isn’t an amount one looks for a loan for unless in a very tight place and that’s usually not a good place to be going into debt.
I just ran through the flow to find out, suggested £200 and got told I can borrow up to £15,000
But yes, regards the rather vocal approach at sending notifications about it yesterday, I also thought the same thing
Only thing I can think is they know their demographic being younger, students etc, and that demographic might seek loans for the lower figures sometimes - better to have it through your bank than a loan shark if you need it.
Yeah I was about to say its no different to flex and credit is becoming more and more accesible for people as soon as they hit 18 (Klarna etc), I feel like there’s only a small portion of people who never dabble in credit or loans at some point in their life.
So its better to offer it and also educate people on how to use credit/loans etc effectively and when you should be using them (ie. not taking out a £200 loan so you go out during freshers week).
