Many people are not aware of money lending agencies and what they do. Money lending agencies or a licensed moneylender will provide money to individuals that need money but cannot get a loan from the bank. The amount of money given will vary depending on the applicant’s credit history and income level, among other factors.
Lucky for you, we will discuss the things you need to know about moneylenders before choosing one. We’ll talk about interest rates, repayment options and more!
What is a Money Lending Agency?
A money lending agency is a business that will provide money to individuals in need. Money lending agencies can provide loans with interest rates of their choosing, such as 30% – 200%. The money lent may come from the lender’s own funds or through other sources like banks and credit unions.
The amount of money you can loan largely depends on your income level and credit history. The amount can vary depending on what type of loan it is: personal unsecured, payday loans, money back advances or instalment loans. For example, $100-1000 for those with bad or no credit plus an annual fee of 12%-50%. Alternatively, you might get more money if you have good credit but higher fees (say 15%).
In short, if you are in need of some money and money lending agencies are your only option, it’s important to know exactly what the money will cost you in terms of fees and interest rates.
Pros and Cons of Moneylending Agencies
Moneylending agencies have their set of pros and cons that you need to understand before applying for money. One pro is that moneylending agencies will provide money without requiring a credit check or any collateral (such as your car). Another pro is that moneylending agencies offer repayment plans that are flexible.
Money lending agencies have two main downsides – high rates of interest on their loans which can top out at 200% APR! And the other downside is hefty annual fees, usually around 50%. These are just some of the things people should know about money lending agencies.
It can be troubling for a lot of individuals to figure out how much they will owe based on their income level or credit score, which is why it’s important to do your research before applying for any moneylending agency loan. Remember, this article doesn’t substitute for professional advice from a qualified person, so please always consult with an expert first!
What are Interest Rates?
Interest rates vary from one moneylender to another but typically range between 20%-200%. The higher, the more money upfront than monthly repayments can be, so consider whether or not this is right for you before choosing a company! Some people prefer lower interest rates over smaller repayments because they may have bad credit and cannot get any other type of loan- which means that their choice for repayment could run into years rather than months. Others choose high-interest loans with short term repayment periods as they do not need large amounts of money.
Sometimes, moneylenders will offer lower percentages like 20-30%, which might be more manageable, but it’s important to read both sides before agreeing to anything.
What about Repayment Options?
The money lending agencies typically offer flexible repayment options. The moneylender will work with you to find a payment plan that fits your budget, and they may also provide extensions if needed (depending on the company).
Some of these plans might include: paying back everything in one big chunk after 12 months, making payments each month for 24 months or even splitting up your repayments across 36 months. Be sure to read through all the fine print before agreeing to anything because not every money lending agency has the same policies about payment schedules! You’ll want to make sure it’s what you’re looking for.
How to Find the Right Moneylending Agency?
In order to find the right money lending agency for you, it’s best that you know what your needs are. What amount of money will satisfy your needs? How much should the annual fee be? And how high would interest rates need to be in order for this service to work out?
Once these reasonable questions have been answered and a moneylending agency has been chosen with information about their fees and features, then one can make an educated decision on whether or not they want to proceed with applying for money from them.
Common Concerns about Moneylenders
There are many money lending agencies out there, and many customers have concerns about these businesses. Let’s learn about some of the most common moneylender worries:
- Will I be able to get a loan?
- What is the interest rate on this money lender’s loans?
- How much money can you afford to give me so that I can pay back what I owe, plus any fees and interest rates that come with it?
- What is the moneylending agency’s annual fee?
- How long do I have to pay back my money?