Cash App is giving select users a way to get short-term loans. The company said it’s only testing the feature with around 1,000 users for now. The loans range from $20 to $200. Users are expected to pay the loan back in four weeks, along with a flat fee of 5% (60% APR).
If you don’t pay off the loan after four weeks, you’ll get an additional one-week grace period, then Square and Cash App will start adding 1.25% (non-compounding) interest each week. You also won’t be able to take out an additional loan if you’ve previously defaulted. “We are always testing new features in Cash App, and recently began testing the ability to borrow money with about 1,000 Cash App customers,” a company spokesperson said in a statement. “We look forward to hearing their feedback and learning from this experiment.”