UK building society Nationwide has introduced an online credit facility allowing Internet banking customers to self-manage a loan of up to £15,000.
Nationwide will pilot the 'e-Loan' credit facility this year, inviting 50,000 members to take part. Full launch of the product is scheduled to take place in 2002, following feedback analysis of the trial.
Registered Internet bankers can apply for the facility - an extension of the FlexAccount current account - in a matter of seconds, and then choose when and how much they wish to borrow. All funds are transferred and repayments made online. Customers only pay interest on what they use, at a rate initially set at 9.9& APR.
Jim Willens, Nationwide's e-commerce director, says: "e-Loan enables members to decide for themselves how much they need to borrow and when they want to access the funds."