If you’re short on cash and wondering whether Venmo offers loans, you’re not alone. While Venmo is a popular peer-to-peer payment app, many users are curious if they can borrow money directly from the platform.
This guide covers whether Venmo provides loans, alternative borrowing options, and the best way to handle money lending within the app.
Does Venmo Offer Loans?
As of 2025, Venmo does not offer direct personal loans like traditional banks or loan providers. However, you can access funds through the following methods:
- Venmo Credit Card Cash Advance: The Venmo Credit Card allows users to withdraw cash from ATMs that accept Visa. However, this is treated as a Visa cash advance, meaning it incurs a 5% fee (minimum $10), high interest rates (Prime + 23.99% APR), and interest starts accruing immediately upon withdrawal.
- Venmo Request Feature: You can request money from friends or family within the app, essentially functioning as a personal loan between individuals.
- Venmo’s ‘Pay Later’ Option: Some users may have access to Venmo’s Pay Later feature, a Buy Now, Pay Later (BNPL) option offered through PayPal Credit. This allows eligible users to split purchases into installments, subject to approval.
Venmo does not provide structured personal loans or cash advances directly. If you need a formal loan, consider a personal loan provider.
Eligibility to Borrow Money From Venmo
If you plan to use Venmo’s credit services or borrow from friends, you should meet these basic criteria:
- A verified Venmo account linked to a U.S. bank.
- A good transaction history with no account restrictions.
- A Venmo Credit Card (for cash advances only).
- Must be 18 years or older and have a valid Social Security Number (SSN) (if applying for Venmo Credit).
- A good credit score if applying for the Venmo Credit Card.
How to Borrow Money Using the Venmo Credit Card
If you want access to cash using Venmo, applying for a Venmo Credit Card is one option. Here’s how to apply:
- Open the Venmo App – Launch the Venmo app on your mobile device.
- Go to Settings – Navigate to the settings menu and find the Venmo Credit Card option.
- Apply for the Card – Follow the on-screen instructions and submit your application.
- Wait for Approval – Approval depends on your credit score and financial history.
- Use the Card – Once approved, use it for purchases anywhere Visa is accepted.
- Cash Advances – You can withdraw cash from ATMs, but remember that cash advances come with higher interest rates and fees.
Always review the terms and conditions of the Venmo Credit Card before using it for cash advances.
How to Borrow Money from Friends Using Venmo
If you don’t qualify for a Venmo Credit Card, another option is borrowing money from friends or family through the Venmo Request Feature.
Open the Venmo app, tap ‘Pay or Request’, and select the person you want to borrow from. Enter the loan amount and add a note specifying that the transaction is a loan to avoid confusion. Once the person accepts the request, the funds will be added to your Venmo balance. However, Venmo does not enforce repayments, so borrowed funds rely on mutual trust.
How to Repay a Loan on Venmo
Repaying a loan on Venmo is simple. First, log in to your Venmo account and ensure you have enough funds in your balance or linked bank account. Next, find the friend you owe using the search feature, select ‘Pay’, and enter the exact amount borrowed. In the payment note, mention that this is a loan repayment to avoid confusion.
Once confirmed, the funds will be sent instantly. Keeping up with timely repayments helps maintain trust and prevents conflicts.
Risks of Borrowing Money on Venmo
Borrowing money informally through Venmo has risks, including:
- IRS Reporting for Venmo Payments: Starting in 2024, users receiving over $5,000 in payments for goods and services will receive a 1099-K tax form. In 2025, the threshold drops to $2,500, and in 2026, it will lower to $600.
- No Legal Protection – Unlike bank loans, Venmo transactions have no legal contracts or protection.
- Public Transactions – If you don’t update privacy settings, others might see your loan request.
- Lack of Repayment Options – Unlike banks, there are no structured repayment plans or extensions.
If you need a safer, more structured loan, consider alternative borrowing options.
Best Alternatives to Venmo Loans in 2025
Since Venmo does not offer direct loans, here are some cash advance apps that allow you to transfer funds to Venmo for use.
- Earnin: Offers up to $750 in cash advances based on your paycheck.
- Dave: Dave provides cash advances up to $500, with optional express transfer fees and a $1 monthly subscription fee.
- MoneyLion: It offers interest-free cash advances up to $1,000 for eligible users.
- Brigit: Brigit provides cash advances up to $250, with a monthly subscription fee ranging from $8.99 to $14.99.
- SoFi: SoFi offers personal loans ranging from $5,000 to $100,000, with fixed interest rates starting at 8.99% APR, depending on the borrower’s credit profile and other factors.
Always review loan terms and interest rates before borrowing.
Conclusion
Venmo does not offer traditional loans in 2025, but you can access funds through the Venmo Credit Card or peer-to-peer transactions. However, these options come with risks and limitations.
If you need a formal loan, consider using cash advance apps or personal loan providers that offer structured repayment terms. Always borrow responsibly and ensure you can repay any borrowed funds on time.
