UK challenger bank Monzo has announced it will offer short term loans.
In brief:
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The loan service was formally launched on Thursday after a trial involving 4,000 users.
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Loans will range from £200-15,000, for time periods between 90 days and 60 weeks.
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The FinTech will charge a maximum of 20.4% APR on loans up to £7,500.
What does this mean?
The news follows the collapse of Wonga last year – and while “payday lenders” - those which offer short term loans online - are often perceived negatively, Monzo has kept its APR low in comparison, with CEO Tom Blomfield insisting stringent checks are in place, and that the loans “aren’t targeted at the sub-prime end of the market at all”.
