Text Loaning
A new method for acquiring emergency loans has emerged known as text loaning. These are loans which an individual can receive by just text messaging the companies that give them using a mobile phone.
One company known as Txt Loan offers this service. After a registration and approval procedure a customer can text the company any time of the day for a quick fix of up to £100.
The interest rate can be quite steep, from £10 interest on a £100 loan to be paid back in just a single week; a rate of 994% APR, although being paid back weekly it may never come to so much.
There is a concern over how this may affect peoples' debts, especially in times like Christmas and when most of Txt Loan's customers are in their 20's and 30's. However, Gert Koppel, Chief Executive of Txt Loan says it is value for money and that the rates are clear and easy to understand.
Txt Loan claim to be responsible and only give loans to persons who earn at least £400 a month. They say only around 10% of applicants are ever accepted on the deal and that most pay their loans back on time.
Some organisations, such as Credit Action, are still wary though that other companies might try something similar and irresponsibly target more vulnerable people such as students.
Source: Working Lunch, BBC.
Text Loaning
One company known as Txt Loan offers this service. After a registration and approval procedure a customer can text the company any time of the day for a quick fix of up to £100.
The interest rate can be quite steep, from £10 interest on a £100 loan to be paid back in just a single week; a rate of 994% APR, although being paid back weekly it may never come to so much.
There is a concern over how this may affect peoples' debts, especially in times like Christmas and when most of Txt Loan's customers are in their 20's and 30's. However, Gert Koppel, Chief Executive of Txt Loan says it is value for money and that the rates are clear and easy to understand.
Txt Loan claim to be responsible and only give loans to persons who earn at least £400 a month. They say only around 10% of applicants are ever accepted on the deal and that most pay their loans back on time.
Some organisations, such as Credit Action, are still wary though that other companies might try something similar and irresponsibly target more vulnerable people such as students.
Source: Working Lunch, BBC.
Text Loaning
Labels: innovation, loans, mobile, technology, txt loan
