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All about money lenders services

About money lenders services

Money lenders services fall in the financial business category where, licensed money lenders issue small personal loans. However, money lenders give their money at higher interest rates than the those prevailing in the market.

This is as a risk cover due to the increased chances of the beneficiaries defaulting to repay the loans. Money lenders services are of great benefit if you cannot provide sufficient prove of repayment ability to a bank or building society.

The services targets low income earners who cannot provide collateral or security in case of defaulting the repayment. In UK, money lenders are also referred to as Home Collected Credit. The name comes from the fact that the money lenders services are brought your doorstep. These involve the loan issuance and repayment collection.

Characteristics of money lenders services

If you are planning to borrow money from a money lender, there are a few must-know facts you ought to know. These include:

  • They come at a very rate of interest but also offer small durations of repayment.
  • They do not require you to provide security or collateral hence, for a low income earner; you can easily secure the loan.
  • You cannot get huge amounts of loans from money lender services.
  • The credit is collected on a weekly basis, usually from your home.

In UK, the Provident Financial is the most renowned money lender business. It has close to 2 million clients; compromising of 60 percent market share of all money lender services.

While choosing money lenders services, you must ensure that they have been licensed by the Office of Fair Trading. This ensures that you are not overcharged on interest rates by loan sharks rather than on the rates set by the Office of Fair Trading.

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