Just a quick question, I seen today its possible to take out a loan with monzo, but can you take out multiple loans? If you take out a loan, are you committed to that limit or is there an option to allow you to borrow more over time?
Thanks
Iāve just checked mine, thereās no other options in app to apply for another one, so appears to be just one at a time
I would imagine you wouldnāt be allowed to take out multiple loans on your account , Monzo have offered you the maximum they think you can service with repayments , I could see you being offered another loan after you have successfully paid off your first one , once you take out a loan you are committed to that loan for that amount, for that period.
I didnāt think you could have multiple loans with any bank. I always assumed that theyād consolidate them if you needed more money 
Multiple mortgages, multiple credit cards, multiple loans are all possible with the same institution. With same or different rates, duration, amounts, conditions, etc.
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So if you were offered 15k and you decide you want a 5k loan for 2 years for a car then a year later you need a 2k loan for a boiler, youād be denied the second loan but youād be ok if you took the 15k and put some aside ?
If so it would seem Monzo are increasing their risk by encouraging folk to take the maximum loan, rather than the one they need
I agree that Monzo will have a changing view as to the maximum loan they think you can take on(or they want to risk), being offered 15k today is no guarantee that itāll be available next week (even if I think my circumstances are the same if better)
At least with the large banks they allow you to have multiple of everything - each with their own terms, repayments etc
Options to consolidate do exist alongside.
Im not sure about the financial logic of taking out a loan for Ā£15K when you only want Ā£5K, but want to put aside a Ā£10K buffer , just in case something happens , but maybe people do and live with the extra payments on the loan that they might need for peace of mind 
Wouldnāt it make more sense to take a loan for the amount you actually need, and then have a separate credit card for ājust in caseā so youāre not paying interest on something unnecessarily?
@TTJJ & @anon95680666, while yes, you both have the right idea. Unfortunately in practice, you might see people taking a loan (slightly) above what they need. For example.
if I get a loan of Ā£5000 over 24 months, I repay Ā£221.45/month (with 314.56 interest)
However, thatās at an interest rate of 6.1%
Now, if I were to go for a loan of Ā£7500 (but only need Ā£5000 for whatever I was doing), Iād pay Ā£324.45 per month, but Iād only end up paying Ā£288.99 in interest (at 3.7%).
Therefore you, could argue that if you need a 5k loan, but take a loan for 7.5k (and keep 2.5k back, and use that to pay the extra monthly payment amount), youāll end up actually saving money because youāre paying less interest back. 
oh I agree about a āsmallā buffer, there were also previous suggestions somewhere on the forum to take out the Ā£15K at a much lower interest rate and immediately pay back Ā£10K ending up with the Ā£5K you actually needed at a much lower interest rate ā¦I think, but cant recall Monzo didnāt object to this in theory ???
If you are financially astute and you can in fact do this , it would be the best solution , if however youre not and as soon as your Ā£15K hits your account you go shopping I think its a terribly irresponsible idea which Monzo ( may ) allow ??
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No and no issue doing this. I took out more than I needed to get the lower rate, paid the extra back the next day
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I guess we see the inverse of this a lot on this forum, where people actually canāt get a loan from Monzo at all, or itās really low. Therefore, I think the likelihood of people being irresponsible that can get that sized loan is lower (hopefully)
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Well of course and thatās what Iād do(well tbh these days Iād try and save for it)
Yes itād be a terrible idea, but with the one loan restriction it might seem to some not to be so terrible (especially if you find credit hard to get)
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