How do Revolut Loans Stack up Against its Competitors?

  • By: Walter Dunphy ACCA
  • Date: June 23, 2023
  • Time to read: 3 min.

Revolut is continuing to disrupt the old guard of traditional banks in Ireland with its fast moving and innovative approach to the banking industry. It has taken further steps in recent times such as providing loans and deposit accounts that are backed by Lithuanian Deposit Guarantees. They are also now in the process of rolling out Irish IBANs to customers.

This now puts Revolut on par with other banks and makes it even more of a legitimate option for customers to choose as their number one bank. In this blog post, we will take a closer look at Revolut’s loan offering and see how it compares to some other banks operating in the Irish market.

Firstly let’s go through the terms and conditions and what it takes to access finance on Revolut.

How much can you borrow?

Revolut is currently just offering personal loans to their customers and has not yet entered into the mortgage loan market. Revolut customers will be able to borrow anywhere between €2,000 – €30,000.

How long does it take to get approval for a Revolut Loan?

Personal loan approvals have become more efficient across the board with most banks able to give you a decision on your loan application within a couple of hours.

Revolut is upping the ante again, they claim that they will be able to give you an almost instant decision on your application. You should hear within a couple of minutes and have access to the cash straight away as it will be automatically deposited to your current account.

What interest rates does Revolut charge on their loans?

At first, when you are assessing your options with the loan calculator it will look like you are being offered an interest rate with an APR of 5.99%. But in the fine print, they say that this calculator is only for illustrative purposes only.

The real APR you will be charged can range from 5.99% to 10.99% APR, depending on your financial situation and credit history.

The term of a Revolut can be anywhere from 1 year up to 5 years ( 60 months). They also will not penalise you if you want to repay your loan early for any reason, there will be no early repayment charges.

Common Questions Asked During Application Process

Here are some common questions you will be asked as part of the Revolut loan application process.

  • Purpose of Loan – Whether i’ts for a car, home improvement, holiday, personal expense/event, or refinancing other debt.
  • Marital status
  • Number of dependents
  • Employment status
  • Monthly income after tax
  • Residential status and monthly cost – are you a homeowner with or without a mortgage, renter, living with parents
  • PPSN

Revolut Compared to its Competitors

When it comes to taking out loans, the cost is still the most important factor when comparing where to go. Below is a comparison of rates available to customers of popular banks in Ireland (March 2022):

Bank APY
Bank of Ireland Personal Loan 7.50% (Cheaper rates available for green loans)
KBC Personal Loan (Disc rate for c/a holders) 8.99%
AIB Personal Loan/Home Imp Loan 8.95% (Cheaper rates available for green loans)
An Post Personal Loan/Home Imp Loan 8.9%
Avant Money Personal Loan/Home Imp Loan 9.1%
Revolut Personal Loans 5.99% to 10.99%

It is unclear whether Revolut is cheaper or not than its competitors, it will depend on your personal circumstances and the purpose of your loan to know if you will receive an interest rate at the lower or higher end of the 5.99%-10.99% range.

What we can all agree on is that Revolut will be a great addition to the Irish market and everyone will benefit from the increased competition especially as we have been seeing banks leave the market in recent times.

Disclaimer: This blog post is for informational and educational purposes only and should not be construed as financial advice.

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