Financing Strategy Starts with Understanding GreenSky® Loan Program Plans

Loan Plans Defined¹

Fixed Rate Plans

Fixed rate loans require a minimum monthly payment during the introductory period. During the introductory period, payments are based on a percentage of the total purchases. Amortized payments are based on the balance at the end of the introductory period, so payments are equal across the loan term. There is one clearly stated APR associated with each plan.

Deferred Interest Plans

Deferred interest loans are not the same as a 0% APR promotion. Interest is being charged to the account every month during the promotional period, but the interest is waived if the purchase balance is paid in full prior to the end of the promotional period.

There are two types of deferred interest loans.

1. No/No

No payments are required during the promotional period. However, in order to avoid paying interest, the consumer will need to pay off the entire purchase balance before the end of the promotional period.

2. No/Yes

Minimum payments are required during the promotional period. Interest is billed during the promotional period, but all interest is waived if the entire purchase balance is paid in full before the end of the promotional period. Making only the minimum payments during the promotional period will not be sufficient to pay the entire purchase balance before the end of the promotional period.

Deferred interest loans provide consumers a window of opportunity to avoid accrued interest if they prefer an expedited repayment. These plans offer promotional periods from 3 to 24 months.

Note: When offering deferred interest plans, it is important that your customer understands that, if they do not pay the entire purchase balance before the promotional period ends, they will be charged for the full interest amount that accrued during the promotional period. To better understand or help your consumers understand the terms, read more: Deferred Interest Leave Behind.

Mixed Rate Plans

Mixed rate plans have two different interest rates during the life of the loan. There is typically a 0% promotional interest rate during the promotional period (a determined number of months), followed by a fixed interest rate with amortizing payments for the remainder of the loan term. Monthly payments may or may not be required during the promo period, based on the plan.

Zero Interest Loans (ZIL)

As the name suggests, these loans offer 0% APR for a fixed term. These are not the same as deferred interest or mixed rate loans that have promotional periods during which interest accrues but is waived if the purchase balance is paid in full during the promo period.

The GreenSky® Program offers a large selection of plans in each of these categories with highly varied terms to help you select the type of loan that best fits the needs of your consumer.

GreenSky works with its Merchants to determine the right mix of loan plans for their business and their market.

For further explanation of loan plans and how they may be marketed: Home Improvement Compliance Guidelines.

 ¹All plans are subject to credit approval. GreenSky® Program consumer loans are made by Synovus Bank, Member FDIC, NMLS #408043, without regard to age, race, color, religion, national origin, gender, disability, or familial status. GreenSky Servicing, LLC ("GSS", NMLS #1416362, www.nmlsconsumeraccess.org) is a financial technology company that manages the GreenSky® Program by supporting originations and servicing the loans on behalf of banks and other financial institutions that make or hold program loans. GreenSky® is a registered trademark of GreenSky, LLC and is licensed to banks and other financial institutions for their use in connection with the GreenSky® Program. GreenSky, LLC and GSS are not lenders. All credit decisions and loan terms are determined by program lenders.