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While you'll want to think twice before taking out a payday loan, if you use Cash App, you might have a source for short-term financing right in your digital wallet. Cash App, the money app from Block, started to pilot test a loan feature back in 2022, and, today, Cash App Borrow is available for select Cash App users. With it, you can borrow $20 to $200 (though, this also varies by user and is based on their Cash App history), with a set repayment timeline of four weeks. The loan has a flat interest rate of 5%.
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If you tap into the Cash App app and scroll down the home screen, you should see the "Borrow" option if you have access to the loan feature. If you don't see it, then you're not yet in the group of users who can borrow from Cash App. There also appear to be conditions on what you can use the borrowed money for; the short-term loan is intended to help cover personal/household expenses.
Who can borrow from Cash App?
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As said, while it is possible to borrow money from Cash App, this ability isn't yet available to all. According to reports, for one, the feature isn't available in all states. In fact, it's only available in 19 states, as of this writing. However, the distribution covers much of the United States, from the West Coast (California) to the Midwest (Illinois, Indiana, and Iowa) to the South (Alabama, Tennessee, and Texas). Cash App Borrow isnt yet available in New York or other East Coast states.
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Beyond geographic location, Borrow is also only available to Cash App users who meet a certain threshold of use. Though there isn't a definitive guide as to how to get the Cash App Borrow feature to show up, it's clear you need to be an active Cash App user. Your Cash App history — specifically, your deposit history — appears to be the biggest factor in whether or not you'll have/gain access to the app's short-term financing. Also, your Cash App cash card needs to be activated. In short, if you're a new user of the app, chances are you won't yet see the loan option.
What's more, not everyone can borrow up to $200. Again, a person's app history appears to be the determining factor in how much you're able to actually borrow. However, the highest is $200.
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How do you repay a Cash App loan?
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Because Cash App Borrow isn't available yet to all Cash App users, that might explain why Cash App isn't promoting the loan feature. Currently, you can't find a page for it on the official Cash App website, and there have been no press releases at this point.
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With that said, we do know how to repay a Cash App loan. If you borrow money from Cash App, you'll need to repay the loan within four weeks' time. If you fail to pay back the balance in that time, the mobile payment service will charge a 1.25% late fee for ever week your short-term loan remains outstanding. Note, there is a one-week grace period before the late fees begin. To repay your Cash App loan, you could set up autopay as you would a subscription plan or make payments manually before the due date. You also could send a check.
Further, as noted, a Cash App Borrow loan comes with a flat 5% interest rate. At this rate, the maximum interest is $10, on a $200 loan. If you were to convert this to an actual APR, it would be 60.059%.
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