Starling Bank, a UK-based digital bank, has introduced its first loan products that will enable its customers to borrow up to £5,000 through the app.
The new Starling Bank loan lending services aims to make lending easier for the customers to suffice their immediate financial requirements.
Go deeper with GlobalData
The digital bank claims that customers can complete the entire loan application process in minutes using its app. They can also select the repayment date and over what period.
Additionally, the bank will also not charge any fine for early repayment.
Starling Bank head of Lending Stuart Leak said: “Our spread the cost loans offer a structured repayment schedule giving customers greater flexibility and control of their money.
“If an unexpected bill hits your account, or you are faced with an unavoidable large expense, you’ll be able to spread the cost with a loan and choose a repayment method, including both the time period and monthly repayment amount that suit you.”
The bank has linked the new lending service with its overdrafts.
All customers, who are approved for a Starling overdraft can apply for a loan and can borrow up to the amount left in their overdraft.
Once the customers lend from the bank, Starling Bank will reduce their overdraft by the same amount.
After the customer repays the borrowed amount, the overdraft will be raised back to its original level.
To offer customers complete clarity, the bank will make all Starling Bank loan details available on the Starling app.
