Lending Stream provides a kind of short term loan which is somewhat like a pay day loan, but ranges for 6 months to even 12 months. If someone is in need of some quick cash for a short time, yet they will not be able to pay the debt in a single month which is the case for traditional pay day loans, then they could opt for Lending Stream loans as these kind of loans let the borrower spread out the loan over monthly installments in 6 months.
"A hypothetical example of an instalment loan would be somewhat like this, if the borrower takes out a £500 loan amount for a period of 12 months in total, they pay monthly installments of £79.09 every month for the loan tenure time till the loan is completely paid off. Which makes it about a total £449.01 in interest and other charges for the loan. The complete amount which the borrower will pay the the lender will be about £949.01. Now, the lender will have an authority to withdraw money from your account on the day of the contract agree payment date every month till their loan is completely paid off."
The payment amount of a Lending Stream loan varies with the duration of loan, amount borrowed and the distance between you borrowing and your first payday. You do not have to wait until the end of the loan to make full or partial early repayments which is why it is the smartest option to take a loan from Lending Stream for a term that is comfortable and as well as paying back the monthly installments make any additional repayments when you can. This means the actual cost of the loan overall may fall. Maintaining monthly budget is of utmost importance. Without the budget plan making regular payments of a Lending Stream loan is not possible. There are criteria which depicts who are eligible and how the payments work, which we have pointed below.
What is the eligibility criteria for a Lending Stream loan?
For being eligible for a Lending Stream loan, the borrower must be a resident of UK who is 18 years of age or older. The borrower also require to have the following things: a valid bank account (for transferring the loan amount to the borrower by Lending Stream), an active debt account (for taking out the repayment sums automatically by the borrower), and email and phone number for contacting. Also the borrower needs to hold a job or a source of fixed monthly income, people who are not receiving a regular income or do not have a steady job may not be eligable for taking out a Lending Stream loan.
What is the loan amount Lending Stream approves?
The eligible loan amount will be different for new borrowers and borrowers who already have established good lending relation with Lending Stream through successful completion of previous loans. Now a new borrower will be eligible for around 50 pounds to 800 pounds in loan. Whereas the loan amount for repeat customers may be up to 1500 pounds. If the customer is already running a loan with Lending Stream they may or may not be eligible for another loan. This depends on the financial stature of the loan.
Even if someone applies for a second loan with the Lending Stream they might get rejected because Lending Stream does a thorough review of the financial condition of the borrower and only then approves them. How Lending Stream approves the loan will be through a thorough review in which they take into consideration everything which is financially relevant to the borrower’s profile. This includes the credit rating and history of the borrower, if they have any outstanding loans previously or if they are applying just prior to their Lending Stream payment day for an already existing loan. Depending on all these the applications will get selected or rejected.
What happens when the borrower misses a payment?
On a Lending Stream loan payment default, a penalty charge will be levied on the loan which complies with the capping limit of FCA regulations and usually under £15 . Now when this same thing happens more than once, if the £15 limit has been hit no further charges are added. As Lending Stream believes in a responsible lending motto, they will do the preliminary checking whether it will be possible for the borrower to pay back the loan taken or not. If not, they simply reject the application. If the application turns out to be ok through their affordability check they will be approved. After that if the borrower faces difficulty on payment of a loan, the Lending Stream will have helplines they can call and work out arrangements informing them of why the payment is getting delayed.
In the case of not being able to afford the repayments AFTER the loan is taken the regulatory authorities require the lender to be able to work out a solution which aids the customer to pay off the loan, so in case of difficulty to make payments they should be informed and a solution should be worked out between the borrower and the Lending Stream.
These loans are not single repayment so offers some financial flexibility by dividing up the payment amount in installments. These loans sometimes run high APRs so should be taken out only in cases of emergency. Since the responsible lending policy prevents them to lend out to a borrower who will not be able to afford it, this is quite a good option for people to take because they will come to know their stature even if the loan is not approved and in such cases they are better off without the loan because it might push them towards even more financial damage.
Editor: This article is for information and was authored by a 3rd party using publicly available information at the time it was written. Before reliance should be placed on any information contained in this article, further clarification should be sought from the Lending Stream Website.
This article is not intended to contain information about, or advertise, products offered by us but is intended to contain information, give opinions or discuss generally available products/services.
Warning: Late repayment can cause you serious money problems
For help, go to moneyadviceservice.org.uk
Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
Author: External 3rd Party