What is a loan?

A loan is a form of credit where successful applicants borrow a fixed amount of money. Interest is applied and money will be repaid via regular (usually fixed monthly) repayments. Loans are usually taken to help pay for one-off larger expenses and are different from overdrafts, which are a temporary form of credit usually repaid in full each month and taken to cover an unexpected shortfall in income or unexpected expenditure. The amount you can borrow and the interest on your loan depends on a number of factors, i.e. your credit score and the term (the agreed length of time given for you to repay in full) of the loan.

Loan application eligibility and the application process.

At the moment, for existing Kroo customers loan applications are by invitation only. If you’re eligible to apply for a loan, we’ll send you an email and an in-app invitation. You’ll see an option to apply in the Kroo app. 

You may have received a pre-approved offer on a price comparison website e.g. ClearScore. If you have, it means you passed our credit and affordability checks, based on information provided on the price comparison site. You will need to open a Kroo current account and we will complete further checks in the Kroo app including anti-fraud checks, identification and address verification. We will also verify your income using Open Banking. Our decision will usually match the price comparison site. However, the loan offer or its terms may change, or you might be declined, based on the further checks we undertake within the Kroo app or if any information differs from what was provided on the price comparison website.

If your application is accepted, you will receive an offer which will include the amount Kroo is able to lend you, the interest rate applied, the duration of the loan and the monthly repayment amount. If you accept the offer, the loan amount will almost immediately appear in your Kroo current account balance. 

If your loan application is declined, you’ll be able to reapply for a loan in 90 days.

Repaying your loan.

Every month, your repayments will be automatically deducted from your Kroo current account on the agreed repayment date, so please make sure you have sufficient funds in your account to cover each repayment. 

During your Kroo loan application you will have set the agreed repayment date and you can see your scheduled repayment date in the Kroo app by visiting the ‘Account’ tab and tapping on the ‘Manage your personal loan’ section.

You can learn more about loan management and repayments here.