US-based fintech company Blinc has introduced a new platform to offer easy credit services to the underserved segment.
The new platform, called BlincLoans, will provide personal loans to those who struggle to receive credit from established financial institutions.
Blinc CEO and co-founder Fabio Torelli said: “According to a 2017 Harvard study, around one-third of households struggle to pay for basic expenses.
“Those living paycheck to paycheck normally don’t have the credit score required to qualify for traditional bank loans or credit cards and, therefore, are subject to predatory interest rates of up to 300% APR set by abusive lenders to finance the gap.”
Interested customers can apply through an online process, which takes around five minutes to complete.
The BlincLoans platform does not use credit scores to determine the loan eligibility of the applicant. Instead, it utilises data from its algorithm to assess their ability to manage the loan.
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By GlobalDataFurther, the algorithm also determines the optimum structure of the payment schedule to prevent burdening the borrower.
The interest rate on Blinc loans is locked at 35.9% (APR) and could be lesser, based on other factors.
Once approved, the approved loan amount is deposited into the borrower’s bank account.
All qualified applicants will be eligible to additional products, benefits and lower interest rates if they maintain a good track record.
Currently, the BlincLoans service is available in beta mode in selected US states.
