Revolut Launches UK Personal Loans for Selected Customers

Can all 14 million UK Revolut customers apply for a loan?

No. Loans are initially available to selected customers, with a gradual expansion planned across Revolut's 14 million UK customers over the coming months.

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Why does UK lending matter for Revolut's business?

Personal loans could increase revenue per customer through interest income and help Revolut become customers' primary bank. However, profitability will depend on lending margins, funding costs and borrowers' ability to repay.

How much can customers borrow from Revolut?

Revolut offers unsecured loans ranging from £2,000 to £25,000, with interest rates between 6.9% and 29.3%.

How will Revolut manage the risk of loan defaults?

Revolut supplements its credit assessments with external data and plans to transfer much of its lending risk through securitisation. It aims to maintain a loan-to-deposit ratio near 6%, although these measures cannot eliminate credit losses.

Can investors buy Revolut shares on a stock exchange?

No. Revolut remained privately held when the UK loan launch was announced, with Reuters reporting a $115 billion private valuation. The lending expansion could influence its future financial performance, but it does not establish a new valuation.

What should investors watch as Revolut expands UK lending?

Loan adoption, repayment performance and interest income will determine whether lending improves Revolut's economics. The company has not set a UK lending volume target and also plans to introduce credit cards before eventually expanding into mortgages.