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Monzo starts lending to customers, but how competitive are its personal loans?

Monzo card
Digital bank Monzo has launched its first personal loans Credit: Monzo

App-only bank Monzo has launched its first range of personal loans, targeting customers who are alienated by the lack of transparency at high street providers.

The digital bank will charge customers interest rates of between 3.7pc and 6pc for loans of £7,500 to £15,000, rising to between 6pc and 20.4pc for loans of £200 to £7,499.

Loans of up to 60 months are available. 

For comparison, rival providers John Lewis Finance, M&S Bank, Sainsbury's Bank, Tesco Bank and Zopa have a headline interest rate of 2.9pc for loans of £10,000. 

Customers looking for a loan of £2,500 can access a best-buy rate of 13.2pc from Admiral, although rates from high street banks are typically higher.

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