Discover Loans, the largest payday lender in the world, says its “borrowing process is not automated.”
However, it’s “encouragingly transparent” and has posted an FAQ section on its website that provides more details.
The FAQ includes information on what types of loans are available and when they’re available.
Learn more about the Discover loan program.
The first-ever consumer-focused payday loan program launched in the United States in September, but it’s not yet available to borrowers in Israel.
The company said it has seen a drop in interest rates since it launched the program in the U.S., with a 3% average annual percentage rate, as well as a 3.5% average monthly rate for its loan options in Israel, where it has a total of 9,000 credit cards.
Discover said it began charging for fees after the cardholder signed up for a loan.
The online lender said it is not charging a fee for the credit card holder’s first installment of a loan, and that the fee is based on a percentage of the total amount owed.
The average amount of interest charges that customers have been charged is 0.8% of the loan amount.
The fees are based on the average monthly payment, the loan term and the amount of money the card holder borrowed.
In Israel, Discover said its loan-based program is more affordable than other credit cards, including American Express.
It is offering a one-time introductory rate of 6% with a 5% down payment, up to $5,000.
The lender said the loan terms range from a six-month term to a three-year term.
Discover has raised more than $40 million in funding since launching its program in July.
The latest round, led by Sequoia Capital, led the round in June, with $30 million from a number of investors, including Alibaba Group Holding, CVC Capital Partners and other firms.