Starling Bank unveils first personal loan products
Starling, the UK-based challenger bank, is rolling out its first unsecured loan products, designed to be tailored to customers’ personal financial circumstances.
The bank’s unsecured personal loans can be requested through the app and, once approved, customers will have access to the money straight away.
Users can borrow up to £5,000 and choose the day a repayment is made and over what period.
The bank aims to show transparency in the entire borrowing process. Starling says customers can see exactly how many payments they’ve got left, when payments are going out and how much they’ll be for. There’s no penalty charge for early repayment.
Stuart Leak, Starling Bank’s head of lending, says: “Our spread the cost loans offer a structured repayment schedule giving customers greater flexibility and control of their money.
“If an unexpected bill hits your account, or you are faced with an unavoidable large expense, you’ll be able to spread the cost with a loan and choose a repayment method, including both the time period and monthly repayment amount that suit you.”
Loans and overdrafts are connected. Anyone approved for a Starling overdraft can apply for a loan, which will usually be cheaper than an overdraft.
In other recent developments, Starling is launching its own Banking-as-a-Platform APIs to allow businesses to offer their own retail banking payments services, such as card issuing as an API.
Read more about Starling’s own marketplace here.
Starling’s main rival is Monzo, as they both offer similar offerings. Now Starling is aiming for more business, and it’s upping its cosmetic game.
