Block Inc. said its Square Financial Services industrial bank subsidiary received approval from the U.S. Federal Deposit Insurance Corp. to begin offering consumer loans directly through its Cash App Borrow product.

Consumer loans were offered earlier through external partner First Electronic Bank. Cash App saw nearly $9 billion in originations in 2024, the San Francisco-based company said in a statement on Thursday. Borrow loans will now be offered to Cash App users directly by Square Financial. There will be no impact on the terms of outstanding loans while Square Financial begins servicing and originating them over the next few weeks, the company said.

“Cash App Borrow is designed to provide short-term cash flow in a simple, fair and accessible way when alternatives are notoriously expensive and difficult for consumers to navigate,” Block said in a statement. “The average Cash App Borrow loan was less than $100 and approximately one month in duration, at a fraction of the cost of a payday loan or overdraft fee — and smaller and shorter-term than what a typical bank offers.”

The majority of Borrow revenue comes from customers who pay on time and the product has a loss rate of less than 3%, the company said. Eligibility depends on customers’ state of residence, Cash App product usage and on-time repayment history. Square Financial’s other offerings include business loans and interest bearing business savings accounts through Square Loans and Square Savings. As of the end of 2024, Square Savings balances totaled more than $300 million.

Square Financial is an independently governed subsidiary of Block headquartered in Salt Lake City, Utah.