No one can deny the growing importance of the small loans, particularly when we discuss about the UK marketplace. From payday loans to the no guarantor loans, people are getting vital benefits of obtaining funds without much to do in terms of following the obligations. Lenders too have become flexible to their approach and they do not hesitate to offer the loans even to the people with no job and no good credit score.
Short term loans are not only the favourite among the borrowers rather they are also the most favoured finance products of the lenders. It is because they can earn huge in terms of the high interest rates. From the last few years, it has been found that few lenders have faced ire of the concerned financial authority because they are asking higher rates, which they should not do.
Recently, news came in the UK that the Church of England has decided to not to attempt to take on the loans of Wonga, a renowned lender of the payday loans. It has decided because the pressure is on to lead the group of “Good People” to buy the loans, as published in the news section of BBC website.
Wonga has collapsed but the borrowers’ debts are still pending. It has been a major issue of concern for the administration. Around 200,000 borrowers are there to be protected but the Church has expressed its inability to do so. As per the quote mentioned in the BBC, “The church commissioners for England today also confirmed their non-participation in a potential buy-out of the UK loan book having concluded that they are not as well placed as others to take this forward.”
Reference link: https://www.bbc.com/news/uk-45611563
In place of taking out the loan of Wonga, the Church has decided to invest in the justify field as it has the investments in the HSBC Bank, supermarket Tesco, GlaxoSmithKline (pharmaceutical company), and also in Microsoft and Samsung.
Wonga is just one example, there are many lenders practising high interest rates on the small term loans. The Financial Conduct Authority (FCA) is also very much strict on this issue and it has already issued a write-up on this issue. (Go to the link here: https://www.fca.org.uk/firms/price-cap-high-cost-short-term-credit)
The financial experts always suggest borrowers to have a comparison of the loan companies before making a selection. Borrowing funds but with extra burden of high rates would only put extra burden on your pocket. To be on the safer side, compare the rates through online and then judge the lender with the acceptable interest rates. This process becomes more important when someone is looking for bad credit loans no guarantor.
There is one more reality that not all lenders are demanding the higher rates. The huge marketplace of the UK has some reliable lenders, which can assist you with the best possible lending terms. Lenders Club, as a dependable loan provider, vows to offer you loans on the nominal rates and provides the personalised offers after analysing your current financial situation.