Revolut takes on high street banks with launch of personal loans in UK

Revolut has started offering personal loans to UK customers in a move that will see it take on high-street rivals since becoming a fully-fledged bank.Read MoreThe unsecured loans, ranging between £2,000 and £25,000, offer “near-instant” funds after approval.It marks the launch of the business’s first credit product since securing a full banking licence.Revolut first applied to become a full bank five years ago and faced a lengthy wait for approval from regulators in the UK.It has started offering bank accounts for retail and business customers since securing a licence, with restrictions, in 2014, and has aimed to start rolling out a wider array of banking services.Loans are already offered in some other countries but the launch in Britain means bringing the product to its home market where it has about 14 million customers.The loans come with rates of between 6.9% and 29.3% APR.Funds are typically transferred within minutes on approval, and customers can apply for and manage their repayments through the Revolut app.The product is currently available to a small number of select customers and will be rolled out in phases over several months, according to the firm.The company plans to launch a credit card product in the near future and, eventually, enter the market for mortgages in Britain, according to reporting in Reuters.UK chief executive Francesca Carlesi 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.“Plus, by bringing credit into the Revolut ecosystem, customers can see exactly how their repayments fit alongside their day-to-day budgeting, spending and investing all in one place.”