Chime launches Instant Loans

The Instant Loans product is user-friendly, and it does not require a credit check for qualification. Chime uses its proprietary technology platform and extensive data sources to assess eligibility. Additionally, making on-time payments can assist members in building their credit over time.

Instant Loans offers three-month instalment loans up to USD 500 for pre-approved Chime members who have direct deposits made into their Chime Checking Account. Members can find out their pre-approval status and eligibility through the Chime app. Once approved, eligible members receive immediate access to loan funds.

With Instant Loans, consumers can borrow at potentially half the cost and benefit up to three times longer repayment periods. Additionally, Chime’s Instant Loans have no late fees or compound interest. Instead, they feature a fixed interest rate of USD 5 for every USD 100 borrowed, which is repaid in three monthly instalments of USD 35 per USD 100 borrowed, resulting in an annual percentage rate (APR) of 29.76%. 

To increase convenience, repayments can be automated and are structured to remain within 10% of the member's monthly cash inflows, ensuring affordability. Moreover, Chime reports on-time payment histories to credit reporting agencies, allowing members to build their credit. Those who make timely payments may see an increase in their credit score by 10 to 30 points, as validated by a previous simulation conducted with Experian.

Other developments from Chime

In May 2024, Chime announced the launch of MyPay introducing a low-cost solution that enabled customers and members to access up to USD 500 of their earnings before payday. With this launch, MyPay aimed to challenge traditional banking practices, empowering customers and members to achieve financial advancement. Moreover, Chime concentrated on addressing the needs, preferences, and demands of clients and users in a constantly changing market, all while ensuring compliance with industry regulations and laws.