• Instant unsecured loans of up to £5,000
  • Customers choose how to structure repayments
  • No penalty fee for early repayment
  • Competitive interest rates

Starling Bank, the leading mobile-only bank, is rolling out its first loan products, which will help customers plan their borrowing effectively and spread the cost of big ticket items.

Flexible, competitive and tailored to customers’ personal financial circumstances, Starling’s unsecured personal loans are built to make borrowing easier. Applying takes minutes in-app and, once approved, customers will have access to the money straight away. They can borrow up to £5,000 and choose both the day a repayment is made and over what period.

Starling customers will have full visibility of what they are borrowing, for how long, their monthly payments and what the total repayment will be at the end of the term, all displayed simply in Starling’s app.

The loans will help customers plan in advance of purchases for big ticket items, like cars or home improvements. Alternatively, they can use the loans to spread the costs of items they have already bought.

Stuart Leak, Starling Bank’s Head of Lending, said: “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.”

How it works: Our loans and overdrafts are connected. Anyone approved for a Starling overdraft can apply for a loan, which will usually be cheaper than an overdraft. They will be able to borrow as much as they have left in their overdraft. A customer with £2000 still to spend of a £4000 overdraft, will be able to turn anything up to £2000 into a loan. When they do, Starling will reduce the overdraft by whatever they borrow – then it will bump the overdraft back up again when the loan is repaid.

Everything is right there in the app at a glance, so 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. Simple.