KOYO Unsecured Loans

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Koyo is an online lender that was established in 2018. It claims to be the first lender in the UK to use open banking to help it make decisions on loan applications.

Koyo uses open banking’s secure technology to look at bank transactions of potential customers, which, alongside data from a credit reference agency, can help the lender to work out whether someone could afford to take on a loan. Koyo’s approach can be useful for people who are new to the UK, who may not have the same credit bureau backgrounds as people who have been living in the UK longer.

Koyo personal loans

Koyo currently offers personal loans from £1,500 up to £12,000. You could choose to repay these loans over terms ranging from six months to five years.

You should only borrow the amount you need and choose a repayment period that allows you to pay back the loan in affordable instalments.

Koyo doesn’t offer joint loans or guarantor loans.

Koyo loan rates

The interest rates that Koyo charges on a loan will depend on factors such as:

  • the amount you borrow
  • the length of the repayment period
  • your credit score and overall financial situation

The total annual cost of a loan will be shown as an annual percentage rate (APR). This figure includes the cost of interest as well as any standard fees, which can help you compare the cost of loans from different providers.

Lenders, including Koyo, advertise a representative APR. This is the maximum APR that 51% of people who are approved for a loan with Koyo will receive, which means that 49% of successful applicants could be charged a higher rate.

Can I get a secured loan from Koyo?

Koyo doesn’t currently offer secured loans. All their loans are unsecured and don’t require you to put forward any property as security.

Secured loans use some form of property, typically a house, as collateral, which the lender can repossess if you default on the loan.

» COMPARE: Secured loans

Pros and cons of Koyo loans

Koyo has several advantages and disadvantages to consider.


  • You can overpay at anytime to reduce the length of the loan
  • You could get a decision on your application within one working day.


  • You may be able to borrow a larger sum from other lenders.
  • You can’t get a loan if you are self-employed.
  • You can’t apply for a joint loan or a guarantor loan.

How do Koyo loans work?

You can apply for a Koyo loan online by providing Koyo with key details, such as your name, address and income.

During the application process, Koyo will use a third-party provider called TrueLayer to view your bank account and see if you could afford the loan repayments and to assess spending habits.

If Koyo approves your application, it will transfer the funds to your account within one working day.

You will then need to repay the amount you’ve borrowed, plus interest, in monthly instalments. You can choose the date that you repay the loan each month.

Can I pay off a Koyo loan early?

Koyo allows you to make an extra payment, on top of your usual monthly payment, at any time.

You can also choose to pay off your Koyo loan in full before the end of the term. You will need to contact Koyo to receive a settlement figure, which you would need to pay to clear your debt.

Can I borrow more?

If you already have a loan with Koyo, you may be able to borrow more money from the lender.

To be eligible for further borrowing, you need to have had your current loan for at least six months and repaid at least 50% of your balance.

Koyo will only offer a further loan if you can afford to repay the extra amount.

What happens if I can’t repay the loan?

If you’re struggling to make payments on your Koyo loan, you should contact Koyo as soon as possible. They could help you work out what options you have available and which would be best for your situation.

What can I use a Koyo loan for?

Koyo allows you to use its loans for a range of purposes, including:

  • buying a car
  • making home improvements
  • paying for a holiday or wedding
  • paying for furniture
  • debt consolidation.

Koyo loans eligibility criteria

To qualify for a loan from Koyo, you will need to:

  • have been a UK resident for at least six months
  • be at least 21 years old
  • receive a regular income
  • own a mobile phone
  • have a decent credit history with no county court judgments (CCJs)
  • not be bankrupt

Koyo won’t offer loans to people who are self-employed.

Can I get a Koyo loan with bad credit?

Koyo says that people with a bad credit history won’t be eligible for one of their loans. So if you have any CCJs or you’ve been made bankrupt, you may not be able to apply.

However, if your credit score is less than perfect, you could still be eligible for a loan. For example, if you’ve made a couple of late payments or you had some problems with credit years ago and are slowly increasing your score, you may still qualify for a loan even though your score may not be ‘excellent’.

Koyo will look at your overall financial situation as well as your credit score to decide whether to approve your loan application.

» COMPARE: Loans for bad credit

How to apply for a Koyo loan

You can apply for a Koyo loan online. In your application, you will need to provide the following information about yourself:

  • name and email address
  • address history from the past six months
  • date of birth
  • residential status (tenant, homeowner, etc.)
  • income
  • employment status

You will also need to say how much you want to borrow and what you want to use the loan for.

As part of the application process, you will also need to log in to your bank account, so Koyo can verify your financial details. Koyo uses a secure third-party provider called TrueLayer to view this information.

Koyo will assess your application and conduct a credit check to make a decision on your application. This check will be recorded on your credit history.

» COMPARE: Personal loans

How long does it take to get a loan from Koyo?

It shouldn’t take long to fill out the online application form. Once you submit the form, it could take one working day for Koyo to make a decision on your application.

Once approved, you should receive the money in your account within one working day.

What if my loan application is denied?

If your application for a loan from Koyo is declined, you should take time to consider why the lender made that decision. Don’t immediately try applying for another loan as multiple loan applications could affect your credit score.

Double-check that you met the minimum eligibility criteria for the loan and that everything in your application was accurate.

You should also check your credit report to see if this could have been the reason for Koyo rejecting your application. Checking your credit score is free and won’t affect your score.

» MORE: How to improve your credit score

Koyo customer reviews

On Trustpilot, Koyo has a 4.9-star rating based on over 1,100 reviews.

This information is correct as of 29 September 2022.

Koyo Loans FAQs

Are Koyo loans regulated?

Yes. Koyo is authorised and regulated by the Financial Conduct Authority (FCA).

Are there any early repayment charges on Koyo loans?

Koyo won’t charge any extra fees if you want to make an overpayment. You should contact Koyo if you want to pay off your loan in full and they will provide you with a settlement figure.

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