Magazine Luiza has announced that, with the launch of Fintech Magalu, it will offer the Magalu personal loan of up to R$ 5,000 to individuals via its app.

The company said in a statement that the debut of the Magalu fintech was accompanied by the introduction of two products, a credit card for companies, aimed at the company's more than 160,000 salespeople, and a personal loan, available directly on the Magalu SuperApp.

Check out how the new 5,000 loan works!

Read also: How to get an online loan: Choose the best option

Main details of the Magalu personal loan

According to users, the monthly interest rate on the Magalu personal loan ranges from 2.99% to 5%. The credit line can be repaid in 36 installments.

Customers can use the Magalu app to sign loan contracts and apply for loans. If the application is authorized after analysis, the amount will be released to Magalu's digital account on MagaluPay.

The new application options are currently being tested, but consumers will be able to use them soon. Magalu believes that around 10 million consumers have already been pre-approved for new loan originations while the system is still under development.

How does payment via Pix work?

Magalu revealed that it is working on becoming a payment originator for Pix transactions.

Currently, when using the fast payment method, the consumer must copy and paste the payment key or scan the QR Code via the bank or online banking application. Payment can be made directly via the website, which is more convenient.

Given the platform's operational profile and target audience, innovation should start with KaBum!, one of the group's brands. The Central Bank authorized it in advance and the competent authorities approved the immediate payment process.

Magalu personal loan directly on the SuperApp: How does it work?

Personal credit, available in the ecosystem for individuals, is financed by Luizacred, a financing company founded more than 20 years ago in partnership with Itaú Unibanco. According to the corporation, participation in the modality is between 4% and 5% per month, based on data.

The corporation has already offered the option to 10 million customers from the 45 million consumers registered on the SuperApp. The Magalu personal loan is requested through the app, and the funds are paid immediately into MagaluPay, the retailer's digital account.

In addition to the online infrastructure, anyone wishing to withdraw or consult the items available can do so at one of Magalu's 1,500 physical storefronts throughout Brazil.

Payment initiator: How does it work?

Magazine Luiza has begun the process of working as a payment initiator with an eye on Open Banking. The first launch is scheduled for Kabum, an e-commerce platform specializing in technology and games that the company bought last year.

It is important to remember that the payment initiator is an institution authorized by the Central Bank to make payments using Pix with the user's permission.

In practice, the feature allows quick payments in e-commerce and transfers via messaging apps, for example, without the need to open the bank's app or connect to the financial institution's website.

Get to know the Magalu card

Magalu added that the corporate card is already in the pre-launch phase, and that several suppliers have already been invited to participate. Anyone wishing to order a card should sign up for a waiting list and wait for an invitation!

According to the company, those who obtain the card will be enrolled in a benefits program that will allow them to accumulate and exchange points for services provided in the Magalu ecosystem.

Fintech Magalu will also include the Luizacred business, as the corporation's lender, in addition to Itaú Unibanco. More than 16 million customers use 9 million digital accounts and 7 million credit cards, and the Total Transaction Volume (TPV) processed by Fintech Magalu in 2021 has a result of R$ 65 billion.

In addition, Fintech will rely on the service of the chain's almost 1,500 physical stores across the country, where customers will be able to make withdrawals and ask questions about the financial products available.

Magalu's partnership with Banco Itaú

Since 2001, the partnership between Magalu and Banco Itaú Unibanco has provided Magazine Luiza's customers with various credit-related products, such as payroll loans.

With the launch of its own fintech, MagaluPay Magazine will now conduct business directly on MagaluPay, and customers will be able to use the available amount to make PIX to other accounts, or use it to make purchases on websites or in stores.

After launching the fintech and announcing a new credit business, Magalu also said that he is preparing to start making payments for transactions through PIX.

In an instant payment system transaction, the consumer needs to copy and paste the payment key or scan the QR code via the banking application or online banking process that the customer is currently using.

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Payments can now be made directly through the website, faster. The instant payment process has been authorized by the central bank and is in the process of being approved by the relevant authorities.

Therefore, before applying for a personal loan, analyze all the fees and see if this type of service really meets your need for emergency funds.