Koyo Loans Reviews, Pros, Cons & Features (2022)

Koyo is a relatively new loan provider in the UK that offers loans to people with a ‘thin’ credit history. 

What exactly does Koyo have to offer, how is this company different from other competitors on the market, and what do Koyo Loans reviews say about it?

Let’s find out.

What Is Koyo?

Koyo Loans in the UK is an online personal loan provider that offers competitive loan rates to people who don’t have much credit history. The fintech startup, which was founded in late 2018 by Frontline Ventures VC (venture capitalist) Thomas Olszewski, uses open banking data, instead of a customer’s credit history, to determine rates. 

This allows the company to offer much more affordable rates, especially for migrants, people who have never taken credit, or those who aren’t the main billpayers in their homes.

On top of that, Koyo Loans allows for early repayment without charging a prepayment fee.

How to Apply For Koyo Personal Loans?

Before applying for a loan from Koyo, it’s important to make sure you meet Koyo Loans eligibility requirements. 

To apply for a loan, all applicants:

• Have to be at least 21 years old
• Have lived in the UK for at least six months
• Have not declared bankruptcy
• Are not self-employed
• Own a mobile phone
• Have no record of bad credit history as well as CCJs
• Providing a valid email address
• Have a regular income

1. Calculate a loan amount

Before you apply for a loan, you can use Koyo’s online calculator to get an estimate of your rate and interest. All you’ll have to do is set the loan term and loan amount and let the calculator do the rest.

2. Apply online

Once you’ve picked a loan amount and term, click on the apply button and provide the following information:

• Title and name
• Email address and phone number
• Date of birth
• Nationality
• Martial and residential status
• Current address
• Employment status, employer, job title and industry
• Gross annual income and monthly rent or mortgage payment
• The reason for your loan application

3. Wait for a response

Like Tappily Loans and Lending Stream, Koyo Loans will do a quick bank check using the Open Banking system to evaluate your banking transactions and set a loan rate based on that data.

The company will inform you whether they’ll grant your loan within 48 hours of your submission. Once it’s approved, it only takes around a day to transfer the funds to your bank account.

Koyo Loans Main Features 

Personal loans 

Koyo offers customers unsecured personal loans. You can borrow anywhere from £1,500 to £12,000 and choose a repayment term of 6 months to up to 5 years. 

Should you require a higher personal loan, take a look TSB that offers loans up to £25,000 at a low APR of 3.5%. 

Koyo doesn’t charge a fee for settling your debt early. 

Loan application/approval

The application process is entirely online and doesn’t take more than 3 minutes. 

Koyo uses an Open Banking system, through a provider called TrueLayer, to assess applicants’ risk, decide whether they want to offer them a loan, and set a rate. 

The Open Banking system allows Koyo to look at applicants’ financial data and spending habits, without having to rely on credit history or credit score. 

It usually takes the company around 48 hours to respond to an application.

Blog 

Koyo maintains a blog on its website where customers and others can find financial tips – anything from advice on saving money to explainers about how APR works– and articles that can help potential customers understand how Koyo operates and whether it’s a good choice for them.

Loan calculator

The loan calculator on Koyo’s website is a handy tool that can help potential customers figure out how much they would pay in interest and in total if they were to take out a personal loan. 

Once you set a loan amount and a loan term, the calculator will show representative APR (annual percentage rate) figures, the total interest, and the total repayable amount.

Customer Support

Koyo’s customer support team is only available through an enquiry form on the company’s website. The company doesn’t have a live chat feature, an email, or phone, where customers can contact Koyo Loans customer service members directly.

If this is a deal-breaker for you, there are other lenders to consider. Novuna Personal Finance and Dot Dot Loans both offer phone support, while Mr Lender has phone and live chat support.

Still, customers say that the customer support team is polite and helpful and usually takes a couple of hours to respond. 

Is Koyo Legitimate and Safe?

Koyo is a trading name of Betr Technology Ltd., a company that is authorised and regulated by the FCA (Financial Conduct Authority).

TrueLayer, Koyo’s third-party provider, which allows the company to gain visibility of customers’ transaction data, is also authorized and regulated by the FCA. 

Worth noting: Koyo can only access your baking data if you permit them, and even then, the company can see the data in a view-only mode. Some reviews have suggested that a small number of people have been on the receiving end of scam attempts, where fraudsters claim they are from Koyo and ask for personal information. Seeing as how fraud costs the UK around £193 billion a year, this is not something to be taken lightly.

Koyo Loans Review: Bottom Line 

Koyo Loans is an online loan provider that targets people who have little to no credit history to offer competitive loan rates. The company boasts fast loan approval and flexible repayments, has an excellent customer support team, and doesn’t charge any early or late payment fees.