Chime Adds ‘Instant Loans’ for Preapproved Members to Banking App

Chime has launched a product called Instant Loans that enables preapproved Chime members who receive direct deposits to their Chime Checking Account to access three-month installment loans of up to $500.

These members are preapproved for a loan, notified of their eligibility within Chime’s banking app and, once accepted, gain instant access to the loan funds with a fixed interest rate, the consumer financial technology company said in a Friday (March 21) press release.

Because Chime leverages its proprietary technology platform and rich data sources to help determine eligibility, it requires no credit check to qualify for Instant loans, according to the release.

Repayments can be automated and will not exceed 10% of the member’s monthly cash inflows, the release said.

Chime reports on-time payment history to credit reporting agencies, helping members improve their credit score, per the release.

“Our members have told us that they want simple and transparent tools to access money when they need it, and to help them build credit — and we’re excited Instant Loans provides both to our members,” Chime Chief Product Officer Madhu Muthukumar said in the release.

Instant Loans joins some other offerings recently added to the Chime app.

Chime announced Jan. 8 that its members can file their federal and state taxes directly within the Chime app at no cost. The company said that program also enables members to file their taxes in “under 24 minutes” and receive their federal tax refunds up to “six days early” with direct deposit into their Chime accounts.

In October, Chime said that its free overdraft feature, SpotMe, had enabled members to receive a collective $30 billion in overdrafts without having to pay a fee since the feature was launched in 2019.

In May, Chime announced the addition of an earned wage access offering called MyPay to its app, saying it would allow qualifying members to access between $20 and $500 of their pay before payday during each pay period, depending on their limit that is based on estimated income and risk-based criteria.

The company said in its Friday press release that since MyPay’s official launch in July, it has helped members access “billions of dollars.”