What are N26 Installments?

N26 Installments (new tab) allows you to split a card payment after it has been made into 3 to 6 equal monthly repayments. If you are making a large purchase and wish to spread the cost over time, you can use N26 Installments to do so. You can split eligible card payments made in the past 4 weeks. Giving you greater control with managing your monthly budget in a convenient way.

Please note, rates are dependent on your financial situation. Additionally, the card payment must be eligible to be split, which depends on the card payment and the merchant you are purchasing from.

• Effective Annual interest rate: From 8.99% - 19.49% (financial situation dependent)
• Actual Effective cost of 3-6 month installments loan: from 1.87% to 6%. Example:
  • If you split an eligible purchase of €100 into 3 monthly installments with an annual interest rate of 7.49%, your actual effective cost will be much lower—at 1.87%. That means you'll only be charged €1.87 interest to split that purchase with N26 Installments. And if you opt for a 6 month repayment period, the actual effective cost will be 3.75%, meaning that you’ll only pay €3.75 on your installment loans.
• Eligible purchase amount: €20 - €1000
• Installments duration: Between 3 to 6 months
• Merchant / Card payment eligibility: N26 Installments is offered for a wide range of purchases in various categories, including electronics, furniture, plane and train tickets, fashion, and even payments made at your favorite small local store!

Once you have completed the eligible card payment and if you are eligible, you can access N26 Installments in a number of different ways:

• You will see an info card in your transaction list
• Scroll to the end of the Explore tab and tap on N26 Installments under financial products

When you select the eligible card payment you want to split, you will be taken through the below steps to confirm using N26 Installments:

1. First you will be provided with information about N26 Installments
2. Then you can see a breakdown of the effective annual interest rate, the total cost you will have to pay and at the bottom of the screen there is a slider allowing you to choose the duration (your monthly payments will also show on this screen)
3. Last you will see the confirmation screen where you will need to accept both checkboxes and then confirm
4. After confirming your N26 Installments payment plan, you’ll be reimbursed for the total of your purchase amount directly into your main account. We’ll also take out your first installment payment at this time. The rest of the payments will then be automatically charged from your main account on the due date each month (you’ll receive payment reminders 1 day before your next payment is due).

You can manage your N26 Installments by navigating to this section of the app by selecting the options menu (3 dots at the top right of the transaction feed) and then going into N26 Installments. There you will be able to:

• Total outstanding balance
• Current installments
• Installments details
• Repayment schedule
• The option to repay the amount in full

• Split several purchases: You can split several past purchases, as long as their total combined amounts (and total sum of unpaid installments) are within the credit limit between €20 and €1000.
• Missed a payment? We’ll send you a reminder if you have any outstanding payments, and we’ll also try to charge the outstanding payment again on the next day after the missed payment date. You can manually pay back your installments by tapping on ‘Missed payments’ in the N26 Installments section of your N26 app.
• Late fees: There are no late payment fees, and you’ll only be charged interest on your installments payment.
• Pay your N26 Installments at any time: Simply head to the N26 Installments section in your N26 app, select the purchase, and tap on ‘Repay full amount’ to fully pay off the amount. There are no early repayment fees
• What happens if I don’t pay my installments back? You’ll receive info cards and Secure Inbox reminders. We’ll retry to charge the missed payment until day 104. After that, we’ll write-off the loan and hand over the debt to a collection agency. Schufa will also be informed.

N26 Installments is currently only available for customers who’ve opened their account in Germany and if they've made an eligible card payment in the last few months. If you’re eligible, you’ll find the product under your Explore tab in the N26 app. If not, please keep using your N26 account and check again in a few months to see if you’re eligible.

If you find N26 Installments in your app but can't see any purchases to split, your card payments in the 4 weeks might not meet the eligibility criteria to use the feature.

In order to swiftly and efficiently decide on your request for N26 Installments we evaluate your creditworthiness. In order to evaluate your creditworthiness, we generate an internal credit score. Within the scoring process we calculate how probable it is that you as a customer meet your payment obligations. For such calculations we process personal data such as credit agencies’ information and, in case of N26 Installment also your salary, your expenses, existing obligations, your job, duration of employment, experiences of former contractual relations, repayment of former credits as agreed upon. Your scoring is the result of a mathematical-statistical procedure. Based on the data processed and the respective outcome of the internal scoring process, we determine whether we may offer you a N26 Account or N26 Installments and establish the conditions we can offer you for those products. Therefore, our scoring process is necessary to offer you an account with us (Payment services framework agreement - N26 Account) and to manage the offer of our credit contracts to you (as N26 Installments) according to Art. 22 (2) (a) GDPR.

This information should already be helping you to understand the mathematically and statistically validated decision making process we offer to swiftly and efficiently perform and reply to your request for N26 Installments.

You can get in touch with us here and explain why you think that we may have not yet sufficiently considered your point of view in our decision and why we should take further necessary information into account.

After you get in touch with us regarding the respective automated decision, the decision will be reviewed by one of our employees. However, this does not guarantee a different decision by N26.

You can cancel your loan within 14 days. If you cancel within this period, you'll have to pay the full remaining amount and the interest for the days you used. To cancel your loan, head to the Installments in Explore tab and find your installment loan that you would like to cancel.