The Kasasa Loan® is the only loan with take-backsTM. And because the Kasasa Loan and the concept of a take-back are so new, it’s understandable that your community financial institution may have some questions about exactly how it works.
Here are some answers to a few of the most frequently asked questions we get about Kasasa Loans.
What is a loan take-back?
A take-back lets borrowers pay ahead to reduce debt, and withdraw that extra money when they need it. Imagine you take out an auto loan for a gently used car. You get a bonus at work of $1,000. Knowing that it is the financial wise move to pay down your debt aggressively, so you put the $1,000 towards your loan on top of your monthly payment. The next day, your transmission falls out and will cost $900 to replace. With the Kasasa Loan, you can withdraw that extra money ($1,000) you just put towards your payment without suffering any penalty.
How does the take-back feature work?
Kasasa Loans are fixed rate, fixed term loans and consumers are only able to withdraw extra payments made in excess of the monthly minimums.
Once the loan is paid in full, take-backs are no longer available (regardless of whether or not the borrower has reached the end of their term).
Can I offer Kasasa Loans without offering Kasasa reward accounts?
Yes. Your institution does not need to offer Kasasa reward accounts in order to offer Kasasa Loans. A borrower may link any checking account to their Kasasa Loan (it doesn’t have to be a Kasasa checking account).
Can the borrower send the "take-back" to any account?
Borrowers are able to send their withdrawals anywhere. As part of their setup process, the borrower chooses which checking or savings accounts they want payments to come from and where they want take-backs to go.
How will Kasasa Loans work with my institution’s LOS?
We have intentionally designed Kasasa Loans so it doesn’t interrupt your usual loan origination process. It will integrate with your existing LOS so that once a consumer has been approved by your institution, their information will be passed to the Kasasa Loans System.
Is there a maximum amount that can be borrowed?
Nope! There is no maximum amount that can be borrowed on a Kasasa Loan. We don’t get involved in determining who you should lend money to, how much to lend, or at what rate. You would follow your existing underwriting processes and lending practices.
What type of loans are supported by Kasasa Loans?
Currently, Kasasa Loans can only be used with personal and auto loans.
What training is available for Kasasa Loans?
We’ve created an in-depth training program so your institution will feel confident about offering Kasasa Loans. Our Retail Experience Consultants lead on-site events to complement our e-learning training series. They will also provide ongoing feedback on how your team is doing through Mystery Shopping.
Back-office employees will have access to detailed documentation on how to navigate and perform key functions within the Kasasa Loans Admin System.
Is the Kasasa Loans dashboard mobile-friendly?
Yes! The dashboard is a responsive website designed for mobile, tablet, and desktop users.
What collateral is available to market Kasasa Loans?
Our marketing team has developed marketing assets backed by testing and research to drive awareness and reach prospective borrowers. In-branch marketing includes brochures, take-ones, posters, and lobby static screens or video. Other marketing includes online videos, social media, digital display, email, and direct mail.
How will offering Kasasa Loans impact our application and origination processes?
Your application process would be the same as it is today. The Kasasa Loans system picks up a consumer after their loan application has been approved by your institution. Once we receive the new Kasasa Loan record from your LOS, the processing and onboarding for the new borrower are completed entirely online. We offer your staff a modern, interactive interface that categorizes loan data and allows your staff to easily manage Kasasa Loans.
How does this impact my loan underwriting?
It doesn't. Kasasa doesn't underwrite any loans, so all underwriting remains with your institution.
Are Kasasa Loans compliant?
Kasasa Loans is built to be compliant with all relevant lending acts and regulations. We are confident that the Kasasa Loan satisfies all national regulations and guidelines, and we have not found any state laws that would prevent an institution from offering a Kasasa Loan within their state. As we continue to roll out Kasasa Loans, we are happy to work with your respective compliance teams to better understand your state’s specific regulations and ensure all state and federal regulations are continually met.
How much does it cost for my community financial institution?
Typically, there is a setup fee, a small monthly licensing fee that covers the ongoing consulting, analytics, marketing, and training that we deliver, as well as a small monthly fee per loan because Kasasa aligns our success to your loan growth. If you’d like more detailed pricing information, please contact us here.