At the end of the credit check, cutomers will get the effective annual rate and how much the credit line is actually going to cost. They can also customise the length of their loan.
For a EUR 10,000 loan, N26 will give an interest rate (4.59% per annum) and the total amount (EUR 10,475).
The feature is only live in Germany and works for credit lines between EUR 1,000 and EUR 25,000 for up to five years – interest rates range between 2.99% to 8.00% per annum. Behind the scene, N26 can either handle the credit line itself or find a third-party bank for this loan.
N26 has a full banking license that works across Europe. According to TechCrunch, N26 will expand to 17 European countries in total. Consumers from all these countries can now open an N26 account. For example, there are 30,000 users in France, and the company is getting 1,000 new users per day.
Then, N26 will partner with French fintech startups and build out all the existing N26 features that German customers already know and use.
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