Chime offering small loans with 3 payments

Fintech Chime has introduced a new "instant Loan" product via its partner, The Bancorp Bank, N.A. Pre-approved Chime members can obtain instant access to up to $500 with a fixed interest rate. Instant Loans offers three-month installment loans up to $500 to pre-approved Chime members who receive direct deposits to their Chime Checking Account. Members are pre-approved for a loan and notified of their eligibility within the Chime app.

Chime’s Instant Loans have no late fees or compound interest, just a fixed interest rate of $5 for every $100 borrowed, paid back in three monthly payments of $35.00 per $100 borrowed (29.76% annual percentage rate). For greater ease, repayments can be automated and are designed to not exceed 10% of monthly member cash inflows to ensure affordability. Chime's news release says Chime also reports on-time payment history to credit reporting agencies, allowing members to build credit.