Digital bank Nu Mexico has launched a new product, personal loans, initially among its employees for testing, before rolling out to the general market.
The phased rollout of personal loans will begin in the coming days among Nu employees, who will provide feedback and improvements.
The flexible loans, once offered publicly, will be available through the Nu app via an entirely digital application process that takes less than five minutes, the bank said.
Customers will receive a “maximum offer”, with the ability to adjust the amount and payment schedule in a “simulation” on the app.
Those who choose to repay early can do so, without any additional fees or penalties applied by Nu Mexico.
“By expanding our portfolio to personal loans, we are providing Mexicans with more options to achieve their goals,” said Iván Canales, general manager of Nu Mexico.
“We’ve created a product that offers security and autonomy, in the Nu way: simple, transparent, and fair. We give the customer full control over their loan, with no hidden fees or conditions.”
He added: “This is how we want to grow our offering in the country; by empowering people to take control of their money.”
A survey conducted by Kantar in 2022 for International Personal Finance found that six out of every 10 Mexicans had applied for a loan. However, according to the 2021 National Financial Inclusion Survey, only 33% were able to obtain one from a formal financial institution.
“We are having a positive impact by enabling greater access among Mexicans, as around 20% of the smartphone-connected adult population in the country has already applied to build a financial relationship with us,” Canales said.
In May this year, Nu Mexico launched a savings product, ‘Cuenta Nu’, and within a month of its public release had more than one million customers.
Nubank, the parent company of Nu Mexico, recently hit 85 million customers in Latin America and became one of the largest foreign investors in Mexico.