|
Sponsored Links
Credit and Debt
Credit card
Credit union
Debit card
Debt consolidation
Loan
Moneylender
Mortgage
Pawnbroker
A moneylender offers small personal loans at high rates of interest, usually higher rates than the market rate charged on credit cards or on bank overdrafts. Moneylenders are an important source of credit to a category of borrowers who would normally be refused credit by most financial institutions because their income may be at or below the poverty threshold or whose credit score indicates that the borrower might be unable to repay the loan. Because personal loans offered are unsecured and the risk of default by the borrower is high, moneylenders charge an effective interest rate that is in the range anywhere between 100% to 400% APR. [1]. The historic use of the term moneylender refers to a person who as charges a fee for the use of money (i.e. a usuror)[citation needed]. In the UK, the moneylending sector is currently referred to as Home Collected Credit (HCC), reflecting the fact that loans and subsequent repayments are made and collected in person by moneylenders or their agents at their customers doorsteps. The largest lender in this sector is Provident Financial, which has 1.5m customers out of a total of 2.5 million people who borrow from HCC providers, giving the company about 60% market share.[2] In 2005, home credit lenders lent £1.3-2.3bn and collected £1.8bn in repayments.[3]
|
Moneylender Subcategories
Moneylender Articles
|
| 
