If there is one thing Square Inc. has perfected over the years is introducing useful and practical features to its P2P platform, Cash App. In fact, some argue that it’s these features that have made it grow so fast over the last couple of years despite being relatively new in the market.
Some notable Cash App features, which it’s good to point out that they make Cash App seem like a bank, include things like Cash App Cash Card (this is basically a free debit card), Cash App Investing (this is relatively new but allow users to buy stocks of their favorite company), and Cash App Cash Boost
Given the similarities Cash App shares with banks, many Cash App users as well as would-be users are always wondering whether or not they can be able to borrow money from Cash App. Simply put, Cash APP users want to know whether or not Cash App offers loans. The answer is yes but not to everyone. Here’s why.
Cash App & Loans
Cash App is always looking for ways in which it can be able to make using a Cash App account as profitable as possible to its users. While there are a number of ways that they’ve embraced, there is one that’s really drawing in users and that’s its features.
Cash App is always introducing new features that make sending and receiving money as well as accessing money on Cash App accounts both online and offline very easy. One feature Cash App recently launched and is already causing a stir among Cash App users is giving users the ability to get a short-term loan.
Worth noting with this particular feature is that it is only being tested currently and as such, not everyone who has a Cash App account will have the luxury of borrowing money from Cash App.
Based on information shared by Cash App, only 1,000 users will be able to test out this new feature, the ability to get short-term-loans that is. Cash App has plans of broadening the number of people who can use this feature once they see how the test goes and given the state of the economy not just in the US (especially given uncertainty about the stimulus) but also in the entire world, am sure many cash App users wouldn’t hesitate to request a Cash App loan.
Who’s Qualified For Cash App Loans?
The cash App loan feature as already pointed out is not available for everyone. According to information shared by the P2P giant, it is starting by offering for an amount between $20 and $200. Once approved for a long, a Cash App user is given 4 weeks in order to repay it back in full. Keep in mind that the loan is given out at a fee of 5%, multiply this into yearly and you’ll have an APR of 60% and this despite sounding high is way better than what other banks or lending services offer.
What Happens If You Don’t Pay Cash App Loan On Time?
While we would all love to repay whatever money we’ve borrowed, sometimes life just happens thus making it impossible to meet certain loan obligations. Cash App users who fail to pay Cash App their money back as per the agreed duration or period (4 weeks), will get an additional week that Cash App looks at as a grace-period.
Once this ends Cash App adds a non-compounding fee of 1.25% each week a Cash App user fails to pay them back. Worth noting as well when it comes to late repayments is that the more a Cash App user delays repaying their loan, the higher the chances of them not being approved for another loan.
So can Cash App users borrow money from Cash App? Well, yes they can. However, this feature is currently new and as such just a few Cash App users can enjoy it, to be exact only 1,000 Cash App users. Once it’s out of the test period all Cash App users will be able to access this feature.