Metro Bank has announced the launch of its new digital car loan product.

The hire purchase loans, which come under the RateSetter brand, are for used cars which are available through motor brokers.

CarFinance 247 and Motion Finance are the first brokers to pilot the loans.

Metro Bank said it expects to launch the product with more partnerships over the coming weeks.

RateSetter uses technology to provide loan quotes using an automated decision-making processes.

The bank said that the paperless application process allows eligible customers to get instant approvals which mean they can drive their car away on the same day.

“By providing an efficient and market-leading end-to-end journey through RateSetter technology for our broker partners, we’re ensuring quick, reliable and data-led decisions for their customers,” said Lloyd Collect, head of sales motor finance, Metro Bank.

Metro Bank was recently hit with a penalty of £10 million after it breached listing rules by publishing incorrect information to investors.

Craig Donaldson, the bank’s former chief executive, and ex chief financial officer David Arden were also fined a combined £350,000 by the Financial Conduct Authority (FCA) for allegedly knowing about the error.

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