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Tech startups and entrepreneurship

How much do Fintechs make for issuing a credit builder loan to a user?

Fintechs need to pay their partner bank the bulk of the interest, so do they just make money on the small spread; let's say 2%? If a credit builder loan is only $1,000-$1,500 they would only make $20-$30 per customer?

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Odunayo Akolade

Empathetic relationship advice expert.

The revenue that fintech companies generate from issuing credit builder loans can vary widely depending on various factors, including the specific terms of the loan, interest rates, fees, and the volume of loans they handle.
Exact figures would depend on the specific fintech company, its business model, and the market it operates in. If you're interested in the financial specifics of a particular fintech, you would likely need to refer to their public financial reports or contact them directly for that information. Keep in mind that industry practices and regulations may evolve, so the revenue models could change over time.

Answered 11 months ago

Aliya Abbas

I'm an IT Expert with 5 Years of experience.

The revenue that fintechs make from issuing a credit builder loan can vary widely based on several factors, including the interest rates charged, the loan amounts, the repayment terms, and the overall risk profile of the borrower. Generally, fintechs may earn revenue from interest charges, fees, and other charges associated with the loan. However, specific figures would depend on the fintech company's business model and the terms of the loans they offer.

Answered 4 months ago