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What are home collected loans

Home collected loans are easy to apply for and relatively easy to obtain. Private tenants, council tenants and homeowners are all welcome to apply. The companies rarely do a credit check, instead they send an agent around to your home to check you out and ask you questions regarding your finances. They will also ask about your employment and take down a copy of your national insurance number. The amount you can borrow ranges from £75 to £500. However, once you have cleared a loan you can borrow up to £1,000.

Home collected loans are usually paid weekly, picked up by an agent from the company and written in a book you get to keep. There are no default charges and if you cannot afford payment for one week you can miss a payment with no consequences. This is because all these kind of charges are factored in to the interest rate, which is as high as 82% APR with some companies. This means you are repaying almost double what you initially borrowed.

Provident personal finance are the largest home collected loans company in the UK. They offer people the chance to borrow up to £500 with the option of repaying over 23, 31, or 52-weeks. For a loan of £300 paid back over 52-weeks, the weekly payments are an affordable £10.50. However, the total paid back to the company is £546.

Home collected loans give people who will not qualify for a bank loan the opportunity to borrow a small amount of cash to help them out. The door collection makes it harder to miss a payment and at least you know you will not have a mountain of charges building up and increasing your debt.

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