Stilt Raises $ 100 Million to Fund Immigrant Loans
The company has so far raised $ 225 million in total debt facilities for customer loans, the statement said.
In addition, Stilt is rolling out a new chequing account offering, which will add to the growing number of new chequing accounts with the company. Since their launch in September, active checking accounts have grown by 50% each month, the statement said. Stilt chequing accounts are funded by Evolve Bank & Trust and intended to help immigrants achieve financial stability even when they do not have social security numbers.
Stilt accounts come with features like cash rate remittances, the ability to create credit and cash back on services popular with immigrants, the release said. Customers also have access to a pre-approved loan transfer for their account in less than a minute.
As the pandemic continues, the statement says immigrants have been hit particularly hard, with closures and reduced working hours hitting international students and immigrant families. Stilt’s remittance services can help them send money to those in need.
“This credit facility will be instrumental in helping Stilt achieve over $ 350 million in annualized loan volume,” said Rohit Mittal, co-founder and CEO of Stilt, in the release. “We are seeing a significant increase in loan applications from immigrants and low-traffic customers who are facing even more financial hardship and uncertainty due to COVID-19. So it’s critical that we deliver a holistic set of products – from bank accounts to loans and remittances – to meet the growing needs of some of our largest, but least-served populations. “
PYMNTS reported that financial services for immigrants have traditionally been fragile, with banks struggling to provide the breadth of cross-border payments and other similar services. Because of this, new US residents have had to work with multiple accounts to meet their needs.