Revolut has launched personal loans in the UK, offering customers the ability to borrow up to £25,000 through its banking app, with funds typically available within minutes of approval.
Digital banking giant Revolut has entered the UK personal loans market, launching its first credit product since becoming a licensed UK bank.
The new unsecured personal loans allow customers to borrow between £2,000 and £25,000, with repayment terms ranging from one to five years.
Interest rates start at 6.9% APR and rise to 29.3%, depending on individual circumstances. Revolut is advertising a representative APR of 6.9% for loans between £7,500 and £25,000.
The launch represents another step in Revolut’s ambition to become a full-service bank, competing more directly with established high-street lenders.
How Do Revolut Personal Loans Work?
Customers can apply for loans entirely through the Revolut app, with approved funds typically transferred into their accounts within minutes.
Borrowers can check their eligibility and receive a personalised rate without affecting their credit score, although proceeding with a full application requires a hard credit check.
There are no early repayment fees, allowing customers to pay off their borrowing ahead of schedule without additional charges.
The app also enables customers to track repayments alongside their everyday spending, savings and investments.
Francesca Carlesi, CEO of Revolut UK, said:
“UK consumers can face unnecessary friction and complex fee structures when borrowing. We’ve built a transparent and simple loan process with near-instant funds on approval, no fee for early repayment and competitive rates.”
Can Revolut Compete With Traditional Banks?
Revolut’s entry into personal lending introduces another competitor to the UK’s established banks and online loan providers.
Its headline 6.9% representative APR could appeal to borrowers looking for competitive rates, although the actual interest rate offered will depend on their creditworthiness and financial circumstances.
For example, borrowing £10,000 over five years at 6.9% APR would mean monthly repayments of approximately £197 and total interest of around £1,800.
However, customers should compare the total cost of borrowing rather than focusing solely on advertised headline rates.
Revolut is initially making personal loans available to a small group of selected customers, with access expanding gradually over the coming months.
The lender is Revolut Bank UK Ltd, and all applications are subject to eligibility, affordability and creditworthiness checks.
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