The cash app is the best platform for borrowing and sending money to everyone you know. Started mostly for family and friendly transactions, the Cash app has off late allowed businesses to also make transactions. Apart from sending and receiving money, the Cash app also allows you to transact stocks and cryptocurrencies.
If you are with the Cash app, you might know all its wonderful features. However, a new feature recently was tested in a pilot project scheme by the Cash app caught the attention of many. Until recently, the Cash app was not rendering loans to any of the customers. But, through this pilot project Cash app tested the loan concept through 1000 users. Each of them was allowed to borrow an amount of $20 to $200 at an interest rate of 5% with an added 1.25% every week post the grace period for 4-weeks.
|Major Highlights of Cash app loan process|
|Maximum withdrawal limit||$200|
|Minimum withdrawal limit||$20|
|Loan Term||4 weeks|
|Interest Rate||5% monthly|
|Late fee percent||1.25% after the grace period|
How to apply for Cash app loan application
The Cash app has still not brought out the option for the public and the usual steps in the process include doing the following.
- Open the Cash app and press the Cash app balance feature in the lower-left corner of the app.
- From the Banking tab, check for the Borrow option.
- Click on the Borrow tab if you see it and then click on the unlock button.
- You will get a notification on how much you can borrow from the Cash app and you can choose an appropriate amount.
- Choose the repayment plan you want to use to repay your amount.
- Read the user agreement and then click on the Accept tab to take up your Cash app borrow loan.
What are application requirements?
As the Cash app loan feature is still not available to the general public, it is hard to tell who will be allowed to take a loan. But based on the pilot project, here is an estimate of the requirements that might show up.
- Your state of residence matters as the Cash app borrow feature is not available to all the US States.
- Like all the other loan lenders, the Cash app will ask for your current credit scores. A person with a decent credit score can only apply for the loan.
- Only the most active users of the Cash app might be allowed to borrow money from the Cash app to prevent an increased number of defaulters.
Who is Eligible for Cash App Loan?
If you wish to be eligible for a Cash app loan, then here is how you will qualify.
- Those individual Cash app users using the direct deposit option might be the first ones to go live with the Borrow option of the Cash app.
- Cash app will prefer active Cash app debit card users.
- People will want you to enter a detailed mailing address, phone number, and email address for crediting the loan to you.
- You might also need to specify your income source to ensure you qualify for the loan.
Does Cash app loan you money?
The Cash app has currently not been using the loan cum borrow feature. But it might soon roll it out as the pilot project is already completed. Once the borrow feature rolls out, dedicated customers might be the first target followed by others.
How does Cash app loan work?
The loan feature on the Cash app is not for people to borrow heavy amounts of the loan amount. They can only borrow an amount of $20 to $200 from them. The Cash app is ideally aiming for short-term loans or emergency loans people need often when in the middle of something.
If you want to go for this loan amount, you will need to be aware that the interest rate is a flat 5% on it. They might additionally have to pay 1.5% to the 5% if they do not pay back to the Cash app within their scheduled time.
The usual loan process is as follows;
- Once you apply for the loan application, you can see the processing option.
- After your loan is under process, their back end team will check with all your details.
- If they find all the correct entries for your loan, they will instantly approve your loan.
- When you take $200 you will pay 5% interest rate for a month which means the APR will be 60% annually.
Is Cash loan app legit?
Yes, the Cash loan app is a completely legitimate option and as and when it is available, it can solve your instant loan issues. Many people have wondered over a long period of the available loan options with the Cash app. Now that it was made available to a small group, it will also be spread to a larger segment of the Cash app users.
If you want to know more about the Cash app loan process that will be available in the future, you need to read this entire article. Understand more about the Cash app loan from this segment.