Chime, a consumer financial technology company, has introduced Easy Loans to supply pre-approved members with immediate funding access of as much as $500.
This latest offering offers a hard and fast rate of interest and can be found to Chime members who receive direct deposits into their Chime Checking Account.
Eligible members are notified inside the Chime app and get quick access to funds.
The firm doesn’t seek credit check for Easy Loans, but utilises its proprietary platform and data sources to evaluate eligibility.
Repayments are structured over three months, with no late fees or compound interest. The associated fee is about at $5 for each $100 borrowed, equating to a 29.76% annual percentage rate.
Payments are designed to be reasonably priced, with automated options ensuring they don’t surpass 10% of a member’s monthly money inflow.
Chime reports on-time repayments to credit bureaus, allowing members to construct credit.
In accordance with a previous simulation with Experian, participants who consistently make payments on time could see their credit scores rise by 10 to 30 points.
The launch of Easy Loans follows other financial products introduced by Chime, including MyPay, which allows members to access as much as $500 of their earnings before payday without interest or a credit check.
Moreover, Chime’s SpotMe feature enables fee-free overdrafts, covering over $30bn in transactions in 2024.
Chime chief product officer Madhu Muthukumar said: “We’re relentlessly focused on helping on a regular basis people achieve financial progress.
“Our members have told us that they need easy and transparent tools to access money once they need it, and to assist them construct credit — and we’re excited Easy Loans provides each to our members.”
In December 2024, a Bloomberg report said that Chime Financial confidentially filed for an initial public offering (IPO), appointing Morgan Stanley to guide the method.
“Fintech firm Chime launches Easy Loans” was originally created and published by Retail Banker International, a GlobalData owned brand.
The knowledge on this site has been included in good faith for general informational purposes only. It will not be intended to amount to advice on which it’s best to rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You should obtain skilled or specialist advice before taking, or refraining from, any motion on the idea of the content on our site.