Revolut Transitions to Full-Service Bank with Launch of UK Personal Loans

Revolut has launched unsecured personal loans in the UK, marking its first credit offering since securing a domestic banking license. For the fintech sector, this transition from a digital wallet to a full-service lender signals a direct challenge to high-street banks, leveraging Revolut’s massive existing user base to capture a significant share of the consumer credit market.

What was announced

Revolut is introducing personal loans ranging from £2,000 to £25,000 for its UK customers. The product features repayment terms between one and five years and is designed to integrate directly with the app’s existing budgeting and spending tools. Interest rates are set between 6.9% and 29.3% APR, with a representative rate of 6.9% APR specifically for loans between £7,500 and £25,000.

A key differentiator for the product is the removal of traditional friction points. The application process is handled entirely within the Revolut app, utilizing a "soft search" for eligibility checks that does not impact a user’s credit score. Upon approval, funds are delivered near-instantly. Furthermore, the bank has committed to charging no fees for early repayments, a common pain point in the personal loan market.

The rollout is scheduled to occur in phases over several months. It will begin with a small group of select customers before eventually becoming available to Revolut’s entire UK user base of 14 million people. Revolut Bank UK Ltd serves as the lender for the product.

"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."

Francesca Carlesi, CEO of Revolut UK.

The companies involved

Revolut has evolved from a pre-paid travel card provider into a global financial super-app. Since its inception, the company has aggressively expanded its feature set to include cryptocurrency trading, stock investing, and international transfers. In the UK, the company recently achieved a major milestone by obtaining its banking license, a move that allows it to hold deposits and, as seen with this launch, offer credit products directly to consumers.

The UK market is a primary hub for the company, where it currently serves approximately 14 million users. This scale places it among the largest financial institutions in the country by customer volume. Francesca Carlesi, who leads the UK division as CEO, also brings broader industry perspective as a Non Executive Director at UK Finance. Revolut’s strategy has consistently focused on consolidating disparate financial services—from insurance to travel rewards—into a single interface, aiming to replace traditional banking relationships for a digital-first generation.

What FF News has reported before

FF News has tracked Revolut’s rapid diversification across multiple sectors. Recently, we covered how Revolut Disrupts German Telecom Market with Launch of Revolut Mobile, showcasing its ambition beyond core banking. The company has also been active in the rewards space, as seen when Revolut and Eurostar Partner to Turn RevPoints into European Rail Travel.

On the regulatory and social front, we reported on how Revolut Backs CMA Move to Open Apple NFC Access for UK Fintechs and its philanthropic efforts through a partnership with the International Rescue Committee to enable global humanitarian donations.

What this means

This move puts immediate pressure on both traditional high-street lenders and established digital banks. By offering a representative 6.9% APR and removing early repayment fees, Revolut is competing on price and transparency, not just convenience. The real test for the industry will be how effectively Revolut manages credit risk at this scale. For the wider fintech sector, this launch confirms that the "super-app" model is entering its most profitable phase: leveraging high-velocity transaction data to underwrite consumer credit. The question now is whether traditional banks can simplify their legacy fee structures fast enough to prevent a mass migration of loan volumes to digital-native platforms.