Cash App Borrow has a “historic loss rate” of less than 3%, according to Block. Customer eligibility and borrowing limits are based on such factors as customers’ state of residence, Cash App product usage and activity, and on-time repayment history, Block says.

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

Square Financial Services, Inc., the industrial bank of Block (XYZ), is expanding its lending capabilities after receiving approval from the Federal Deposit Insurance Corp. to start offering consumer loan product Cash App Borrow.