GreenSky offers home improvement and healthcare loans to individuals through its merchant and contractor partners.
It offers easy loan terms and competitive interest rates on two types of loans. Individuals can apply for a loan online and get approved quickly.
Let us discuss what is GreenSky financing program and how to get a loan through it.
What Does GreenSky Offer?
GreenSky is a financial service provider to merchants and contractors for home improvement and healthcare projects.
GreenSky loans are for individuals looking for financing for their home improvement or renovation projects. However, they cannot apply for loans directly without a reference to an approved contractor or merchant.
GreenSky offers financing through contractors and merchants. It means they can promote their businesses by offering financing to their clients as well.
Thus, GreenSky helps both individual and business clients through its financing program. It acts as a financial service provider that connects both sides of the contracting industry.
On the other hand, GreenSky is not a direct lender. It does not offer loans directly to customers. Instead, it offers financing through its partner banks.
So, even when you are applying for a loan to GreenSky, you’re not directly borrowing from them. GreenSky will also not approve your loan application directly without involving an accredited merchant or contractor.
GreenSky Financing Program
GreenSky has two types of financing options for borrowers. In practice, these financing programs are offered to contractors who then help individuals get these loans.
Home Improvements
Contractors can offer loans to their clients through GreenSky for different types of home improvement projects.
These home improvement projects include:
- Home automation
- HVAC
- Pools and Spas
- Remodeling
- Roofing
- Water Filtration
- Windows and Doors
Contractors can then work out with their clients the type of loan they need. GreenSky offers deferred-interest and reduced-interest rate loans.
These loans help contractors to expand their business and offer more to their clients. On the other hand, consumers do not need to apply for a loan separately as they can do it through their contractor directly.
Healthcare
The second type of financing by GreenSky is for healthcare providers. This program is also called “patient solutions” by GreenSky.
Individuals who are unable to pay their medical bills can apply for a loan quickly through their healthcare provider if it’s on the list of GreenSky’s approved lenders.
Individuals can apply online with a reference number to their healthcare provider. Then, GreenSky will offer different types of loans available.
The individual applicant will then be able to compare different loans for different loan terms, amounts, and monthly installments.
GreenSky Financing Program for Merchants
As mentioned, GreenSky mainly offers its financing programs to merchants and contractors. It also offers financing services to healthcare professionals.
These business clients offer easy financing terms and different types of loans to their clients through GreenSky.
So, the appeal for businesses and contractors is to expand their business by offering financing options to their clients.
Also, as individuals cannot apply directly for a loan with GreenSky, they must find a contractor or merchant as a partner for a reference.
GreenSky Loan Types
GreenSky has two types of loan categories mainly. Both of these options are open to all types of individual applicants but the approval depends on several factors including credit score, credit history, monthly income, and so on.
Deferred-Interest Loans
These loans offer a promotional period for no-interest payment on your loan. It means you do not pay interest if you repay the full loan amount during this promotional period.
Here are a few key points to remember with GreenSky deferred-interest loans:
- No interest charges during the promotional period.
- The promotional period ranges from 3 to 24 months and a loan term of up to 7 years depending on the loan amount.
- It works as a deferred-interest loan and you’ll have to pay deferred interest from the beginning on the remaining balance.
- The interest rate typically varies from 6.99% to 24.99% for these loans.
- The maximum loan amount is $65,000.
Reduced-Interest Rate Loans
This is a long-term financing solution for borrowers looking to repay home improvement loans with a long loan term.
GreenSky offers a loan term of up to 12 years for home improvement loans which is a fairly long term for these types of loans.
Here are a few key points about reduced-interest rate loans:
- Laon term of up to 12 years.
- Interest rate ranges from 0% to 11.99%.
- Maximum loan amount of $ 65,000.
- No promotional period for interest-free repayment.
Both these types of loans come with a loan originating fee of $39.
How to Get GreenSky Loans?
GreenSky loans are offered through their registered partners to individual borrowers. It means the first step to applying for a loan is to find a registered contractor with GreenSky.
Most contractors will offer you a financing plan for your home improvement project. You can then apply online for a loan.
Borrower requirements include:
- 18 years of age.
- Social security number
- Home address
- Driving license
You may also need to provide financial details like employer identification number or monthly income.
GreenSky will assess your online loan application and offer you a loan term. Its partners may pull a hard inquiry on your credit history as well.
Once approved, your loan will work like a revolving credit facility. You can choose to use all or part of the approved loan amount for your home improvement project.
If you do not use the loan at all, you do not need to pay interest on it. Also, the contractor cannot withdraw the loan amount without your approval.
Pros and Cons of GreenSky Financing Program
GreenSky loans help contractors and individuals alike. So, there are some benefits and limitations for both parties.
Pros Explained
GreenSky helps contractors, merchants, and healthcare providers to expand their businesses by offering loans to their clients.
Partners can offer these financing solutions by paying a nominal membership fee. They do not need to pledge any assets as collateral and they’re not responsible for the borrower’s default.
Individuals get fast approval and different loan terms. These loans offer a promotional period of up to 24 months to repay the loan without interest.
Borrowers do not need to use the full amount of the loan approved. They can use this facility as a revolving credit facility and use only the portion they require.
Cons Explained
Contractors and other partners must pay a membership fee for registration with GreenSky. Also, membership is not automatic as it comes with an approval process.
For individual borrowers, the biggest drawback is the need to apply through a contractor. They cannot apply for a loan directly.
Also, the zero-interest promotional period may not be sufficient for some borrowers and they may have to repay the deferred interest as well.
Frequently Asked Questions about GreenSky Financing
Let us now answer some commonly asked questions about GreenSky financing.
Does GreenSky Offer Loans Directly?
No, GreenSky is an intermediary service provider that offers loans through its partner banks and financial intuitions.
Also, it does not offer loans directly to individual borrowers. Applicants must apply through its registered contractors.
Does GreenSky Allow a Cosigner?
No, GreenSky does not allow a cosigner for both types of loans.
However, it allows joint loan applications and it can improve your loan approval chances.
Is GreenSky Loan Tax-Deductible?
Generally, home improvement loans are not tax-deductible. However, the exact tax deduction amount and procedure will depend on your type of loan and usage.
What Happens if I Do Not Use My Approved Loan?
You do not have to pay interest on the loan amount if you do not use it. You can close the account before authorizing a transaction to your contractor.
Why My Loan Amount is Different from What I Applied for?
Sometimes, GreenSky will approve a higher loan amount than you applied for. It is offered as a safety cushion to borrowers for increased project costs for home improvement projects of longer periods.
Borrowers do not need to utilize the full approved amount though.
What If I have to Change My Merchant Partner?
You can request a merchant or contractor partner change with GreenSky. All you have to do is to apply through an approved contractor with GreenSky.
