Following its successful entry into the UK savings market in December, Swedish challenger Ikano Bank has now entered the personal loans market with an unsecured loan at a headline rate of 3.4% APR and a quick and simple application process.

In addition to loans, Ikano Bank is expanding its savings offer with a new Fixed 1 Year Saver account at 2.00% AER.

Dan Joy, Country Manager of Ikano Bank UK says:

“We know that common sense savings and borrowing, on fair terms matters to customers. Which is why we’re launching a simple, personal loan at a competitive rate. It really is as simple as that.

 We’ve got 20 years’ experience of lending to consumers in the UK in partnership with some of the biggest and best names on the high street and more recently have started offering savings.

This new loan is a milestone for us and means we can offer borrowers a simple, fair and great value alternative.”

The new loan, with a headline rate of 3.4% APR is:

  • Simple
    • A quick, online process (takes about ten minutes) with e-signature, so there’s no waiting for paperwork and, once approved, money goes into accounts the next day;
    • There’s no need to apply for or hold a bank account with Ikano, any UK bank account will do;
  • Fair
    • Customers can get an instant personalised quote telling them their APR and exactly how much their monthly payments will be before they apply, without affecting their credit score. This includes telling customers upfront if their loan is unlikely to be approved.
  • Flexible
    • Customers can select a loan term and make repayments over the course of months, rather than fixed years, helping customers to budget;
    • Customers can make early/additional repayments with no additional charge.

Ikano Bank’s recent expansion of its savings offer means it now provides UK savers with three choices, with a higher rate for savers who are willing to save over a longer period:

  • Fixed 3 Year Saver at 2.45% AER
  • Fixed 2 Year Saver at 2.15% AER
  • New Fixed 1 Year Saver at 2.00% AER

The privately owned bank has been operating from Nottingham in the UK since 1994 and has been a tried and tested provider of retail finance to UK consumers for over 21 years. It was originally formed in 1988 by the founder of IKEA, and now intends to bring the same principles of simplicity to banking that IKEA brought to the furniture market.

With its Swedish heritage, simplicity is at the core of Ikano Bank’s offer. Recent research shows that it matters to customers too, with 46% of people saying they find life overcomplicated and an additional 46% of people saying simple and clear process matters above all else when it comes to banking. Almost a quarter (23%) of people in the UK have taken out a loan and not fully understood what they were being offered, leading to over half (52%) of those people finding themselves in financial difficulty.

In December, Ikano Bank published a report 'A simpler Britain.' The report was commissioned by Ikano Bank and written by The School of Life. The report can be downloaded at For loans applicants can visit For savings visit To find Ikano Bank on social media follow @Ikano_UK or #SimplerBritain or search for Ikano Bank UK on Facebook.