Koyo Personal Loan, How to apply for Koyo Personal Loan, Interest rate & fees, Is Koyo App is safe & legit?
Koyo is the UK’s first Open Banking powered lender. It uses technology in providing loans to customers. Moreover, Koyo does not consider only credit score as the main criteria for the loan instead it lookout for other possibilities as well.
Its mission is to help people by providing the loan when they required it but in an innovative way. Thus it uses Open Banking technology to grant loans. We will discuss this in a while.
Koyo was founded in 2018 by Thomas Olszewski with the aim to provide credit to every individual as their fundamental right.
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What is Open Banking?
Open Banking is a type of secure mechanism where third-party financial providers or lenders can access consumer banking, their transactions, and financial data from the banks and financial institutions through a structured framework called APIs.
Types of Loans Koyo Offers
It mainly offers Personal loans.
Koyo Personal Loan Eligibility & Requirements
- Be over 21 years old
- Be a UK resident for at least six months
- Shouldn’t be a bankrupt
- You should not have history of bad credit
- Have a mobile phone
- You must have a regular source of income
- Not be self-employed.
- A valid email address
NOTE: Some additional documents may be required at the time of applying for the loan.
- Log in details of your bank account where you receive your income.
- Your UK addresses for the past 6 months.
Koyo Personal Loan Features
- The loan application process is completely online.
- The loan decision and the payment will be done within 48 hours to your bank account.
- You will have flexible loan repayment options. you have loan repayment term of 6 months to 5 years depends on your loan amount.
- It provides competitive loan rates. If you apply for £4000 for 3 years. Interest rate will be 22.44% pa (fixed). 35 scheduled monthly payments of £152.94 and a final payment of £152.68 will be payable.
- You can repay your loan early without paying any extra fee or penalties.
- Koyo does not offer any short term or payday loans.
- Koyo offers loan from £1500 to £12000.
Koyo Personal Loan Interest Rates & Fees
It offers an APR (Annual Percentage Rate) of 24.9%. As Per Koyo’s official website it does not charge any hidden fees.
How to Apply for Koyo Personal Loans?
- Visit Koyo Official Website , select your required loan amount, choose for how long you need the loan, scroll down a bit and click on the button Apply Now.
- On the next screen you can read terms & condition and click on the button Start.
- Next, Enter your select your title, enter your first name, last name, email address, mobile phone , DOB, Driver’s license number, Nationality, Address, Residential status, Citizenship status , fill your employment details (your income & spending), Select your purpose of the loan and click on the Next button.
- A dedicated loan decision team will review your application and you will get an update after 1 working day about the approval or Rejection.
- If your loan amount is approved, you can apply for the loan by uploading the required documents to the portal. you have sign the loan contract as well.
- After signing the loan contract, the amount will be transferred to your bank account within 48 hours.
How Koyo Loan Repayment Works?
After the loan approval, you can choose your monthly repayment date. Your repayments will be automatically deducted via direct debit from your bank account as agreed.
You just have to make sure that the required amount must be available in your bank account for auto-debit so that your repayment does not bounce hence your credit score remains intact.
Is Koyo Legitimate and Safe?
Koyo is the trading name of BETR Technology Ltd (Company No. 11483187). It is authorized and regulated by the Financial Conduct Authority.
Koyo uses a third-party provider called TrueLayer, to connect to bank accounts that are regulated by the FCA. TrueLayer is a UK-based company that connects to banks to retrieve account data on behalf of customers. Various lenders use TrueLayer services to check the customer account information.
Koyo has only read access to the customer Data. Moreover, it does not save or store your bank login or password.
Koyo Loans Pros & Cons
| Pros | Cons |
|---|---|
| It uses open banking technology to decide the borrowing level. | You need to stay in the UK for at least 6 months to apply for the loan. |
| The loan application process is fully online. | It does not provide loans to the self-employed. |
| No Extra fees. | History of Bad credit will not be accepted. |
| You can get Koyo personal loan if you do not have a credit history as well. |
Koyo Loans Reviews and Feedback
Trustpilot shows 913 reviews on its website out of which 96% are having excellent reviews. Overall It has a rating of 4.9 out of 5 which is excellent.
Koyo Contact Details
You can contact the Koyo customer care team by filling out an inquiry form. The customer service team will get back to you within one working day.
Koyo Postal Address = Koyo, Huckletree Soho, Ingestre Court, Ingestre Place, London W1F 0JL
Koyo Office Timings
Monday to Friday = 9.30 AM to 5:30 PM
Saturday & Sunday = Closed
Conclusion
Since Koyo uses open banking technology for granting loans to customers, it can be a good alternative for getting personal loans.
However, if you have a bad credit history, your loan application is likely to be rejected.
Koyo is really helpful in case the person has recently moved to the UK and staying for at least 6 months, he or she is eligible for the loan irrespective of credit history.
The great thing is that Koyo does not charge any extra fees like a Late repayment fee, Dishonor fee, establishment fee, etc.
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FAQs
You will get an update after one working day whether your loan is approved or rejected.
Yes, of course, you can pay your complete loan early with no extra cost or charges.
Koyo is a direct lender that provides loans to customers.
Yes, a soft credit check will be done by the Koyo to decide if your loan application can be approved.
However, if it is approved and you have applied for a loan, Koyo will do a hard credit check.
