Open Banking Loans

Open Banking uses cutting-edge technology to allow companies like Finio Loans to quickly and securely use your banking, transaction and other financial data provided by your bank - with your permission, of course. This can include information like your balance, income, expenses and any overdraft you may have. It was introduced to increase competition and innovation in the FinTech industry.

Open Banking works by allowing third party providers (TPP) access to your information through secure application programming interfaces (APIs). All participating third parties must be compliant with the Payment Services Directive requirements (PSD2).

Sharing data through Open Banking is simple, convenient and fast, ideal for application processes, sign ups and linking accounts. This means no need to provide evidence through traditional documents or manually inputting your financial information. A lot of budgeting and spending tracking apps on the app store already use Open Banking, so you’ve likely already experienced it.

With the ability to shop around online for different types of loans, getting rejected by your bank isn’t necessarily a problem as lenders like Finio Loans may be able to give you access to bad credit loans despite a low credit score.

We understand that while you may not have a perfect credit history, it doesn’t necessarily reflect your position now, so when applying for an open banking loan with bad credit, lenders will look at your current financial situation and other indicators to decide whether you’ll be able to afford the fixed monthly repayments on the loan.

If you’re worried about being rejected because of your bad credit history, you can check your eligibility with us without having an impact on your credit score. We do soft search credit checks which means your credit file won’t be affected at this stage. Simply enter a loan amount and term into our online loans calculator to receive your loan quote.

Yes. We offer unsecured loans which means you neither need to secure your loan against your assets nor need someone else to be a guarantor as part of your online application.

No. As responsible lending is our priority, we carry out credit checks to make sure we aren’t lending to anyone who can’t afford it.

Of course, you can use the loan for things like unexpected bills, car finance and home improvements. Debt consolidation can often be a good choice depending on your circumstances. However, we encourage you to work out if consolidation loans financially make sense as sometimes spreading the repayments of a larger amount over a longer term can mean you pay more interest.

As with most loan providers, our lender requirements are that you’ll need to be over 18, a UK resident, employed and have a bank account and debit card to complete a loan application. In terms of income, you should be able to comfortably afford monthly payments from your regular income - for example, as a guide, £1250 per month would be a minimum. We’ll look at your credit history and personal finances before making our decision.

Applying for any loan with Finio Loans is quick and simple and you’ll find out if you’ll be eligible within minutes. After that, once your application goes through the required checks, if you meet the loan approval criteria, we aim to pay your money into your bank account the same day you are approved. During busy times, it may take up to 5 working days.

Your total amount repayable is dependent on how long it takes you to repay your loan and the APR you’re offered which is based on your personal circumstances, amount and loan repayment period.

As an example, borrowing £2000 over 12 months at representative 39.9% APR and interest rate 39.9% p.a. (fixed) with monthly repayments of £199.01 your total amount payable would be £2,388.12.

APR is the annual percentage rate and important for calculating the cost of money borrowed and comparing offers.

Interest rates, fees, how often it’s charged and all other costs contribute to the APR. Representative APR is the APR we'll offer to at least 51% of people who are accepted - it's not a guarantee.

The remaining customers that are also accepted will be offered a different APR than the one advertised based on individual circumstances. Please note, the APR offered is based on your personal situation and is dependent on many different factors. As such the APR offered may be different from the representative APR.

Yes, you might. As a lender, we offer our representative APR of 39.9% to at least 51% of customers who are accepted for a loan. If you have poor credit, you may be charged a different rate.

For an open banking loan, you can borrow from £500 to £5,000 and pay back the loan amounts in monthly instalments.

You may be able to top up your loan in the future if you become eligible. You can check your eligibility through your online account.