Lending is the temporary giving of money or property to another person with the expectation that it will be repaid. In a business and financial context, lending includes many different types of commercial loans.

Lending and borrowing are the same transactions from the two viewpoints. Who then can we call lenders?

Lenders are businesses or financial institutions that lend money, with the expectation that it will be paid back. Banks, credit unions, and savings and loans are all potential lenders for a small business

The lender is paid interest on the loan as a cost of the loan. The higher the risk of not being paid back, the higher the interest rate. 

Lending to a business (particularly to a new startup business) is risky, which is why lenders charge higher interest rates and often they don’t give small business loans. 

Lenders do not participate in your business in the same way as shareholders in a corporation or owners/partners in other business forms. In other words, a lender has no ownership in your business. 

Lenders have a different kind of risk from business owners/shareholders. Lenders come before owners in terms of payments if the business can’t pay its bills or goes bankrupt. That means that you must pay lenders back before you and other owners receive any money in a bankruptcy.

• What are Different Types of Lenders?
• How to Make Money by Lending Money
• How to Start a Money Lending Business
• What are the Five Cs of Credit?
• The Types of Loan to Choose From
• What is the Lending Process
• Basic Principles of Lending
• What is the 28 36 Rule
• What are the 4C’s of Mortgage
• Money Lending Organisation

What are Different Types of Lenders?

The most common lenders are banks,​ credit unions, and other financial institutions. 

More recently, the term “lender” has been expended to refer to less traditional sources of funds for small business loans, including: 

• Peer-to-peer lenders: Borrowing from individuals, through online organizations like Lenders Club.
• Crowdfunding: Through organizations like Kickstarter, and others. The good thing about these lenders is that they don’t require interest payments! 
• Borrowing from family and friends: ​There are organizations that help sort out the tricky financial and personal issues involved with these transactions. If you are considering a loan from someone you know, be sure to create a loan agreement. These agreements are sometimes called private party loans.
• Borrowing from yourself: You can also loan money to your business as an alternative to investing in it, but make sure you have a written contract that specifically spells out your role as a lender, with regular payments and consequences if the business defaults. 

How to Make Money by Lending Money

Banks and other lenders are in business to make money. Financial institutions pay a low interest rate on depositor accounts such as savings and money market accounts, then use that money to lend money to borrowers at a higher interest rate in the form of loans and credit cards.

It may sound like lenders are the bad guy, but they actually serve a purpose in the economy. However, because lenders have an interest in maximizing their profits, lending also comes with costs and cautions. Another way you can make money by borrowing money is through peer-to-peer lending. Here is how it works.

How Does Peer to Peer Lending Work?

Peer to peer lending is one of the most simple and effective ways to make passive income. There are some qualifications to use peer to peer lending such as being in a state that allows it, and having a certain level of verified income in different states. Usually, it’s $70,000 a year or more in income. 

Beyond that, you just need a bank account of some kind – an online, credit union, etc…, it doesn’t matter what kind of account it is.

Prosper.com is essentially a crowdlending website where you become someone who loans out money and you get paid interest. You’re like a bank now, getting paid interest. It’s an awesome feeling to be the lender instead of the borrower. You invest in portions of loans.

If someone on Prosper.com is asking for a $10,000 loan to consolidate their credit card debt, you’ll more than likely not invest nearly that much. You’ll invest in part of the loan – maybe $25, $50, or $100. This is called a note.

Lots of people will help this person get that $10,000 loan. And that group of people will then be the lenders of that $10,000 and when that happens, the loan will be funded and interest payments will begin. When it comes time for the borrower to pay interest each month, you’ll get a portion of that interest.

Prosper.com takes a small percentage of the interest (around 3%) earned on each loan – that’s how they make their money. So if you are paid interest on a note for $1.00, Prosper.com will take $.03 and you will be left with $0.97.

How to Start a Money Lending Business

If you want to start a money lending business, you will need to decide what kinds of loans you want to make—payday, mortgage, or installment loans. You may choose to start a lending business using only your own money or money from a group of investors. Starting a money lending business will require that you develop a business plan and gain the necessary government licenses.

Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What are the startup and ongoing costs?
• Who is your target market?
• How long it will take you to break even?
• What will you name your business?

Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your micro lending company is sued. There are many business structures to choose from including Corporations, LLC’s, and DBA’s.

You should also consider using a registered agent service to help protect your privacy and stay compliant.

Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.

Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

What are the Five Cs of Credit?

Character

What it is: A lender’s opinion of a borrower’s general trustworthiness, credibility and personality.

Why it matters: Banks want to lend to people who are responsible and keep commitments.

How it’s assessed: From your work experience, credit history, credentials, references, reputation and interaction with lenders.

How to master it: “Character is something you can control and promote, but only if you have a bank that cares about relationships,” Farris says.

If you use a local or community bank, build a relationship. Farris recommends sharing good news about your business with your banker and finding ways to promote the bank. “Make yourself someone they want to lend to,” he says.

Capacity/Cash flow

What it is: Your ability to repay the loan.

Why it matters: Lenders want to be assured that your business generates enough cash flow to repay the loan in full.

How it’s assessed: From financial metrics and benchmarks (debt and liquidity ratios, cash flow statements), credit score, borrowing and repayment history.

How to master it: Some online lenders may be more open to helping you finance immediate cash flow gaps. If you’re focusing on local banks, pay down debt before you apply. Also, calculate your cash flow to understand your starting point before heading to the bank.

Capital

What it is: The amount of money invested by the business owner or management team.

Why it matters: Banks are more willing to lend to owners who have invested some of their own money into the venture. It shows you have some “skin in the game.”

How it’s assessed: From the amount of money the borrower or management team has invested in the business.

How to master it: Nearly 60% of small-business owners use personal savings to start their business, according to the Small Business Administration. Keep a record that shows your investment in the business.  

There are other ways, however, to acquire startup funding if you don’t want to take on all the risk yourself.

Conditions

What it is: The condition of your business — whether it is growing or faltering — as well as what you’ll use the funds for. It also considers the state of the economy, industry trends and how these factors might affect your ability to repay the loan.

Why it matters: To ensure that loans are repaid, banks want to lend to businesses operating under favorable conditions. They aim to identify risks and protect themselves accordingly.

How it’s assessed: From a review of the competitive landscape, supplier and customer relationships, and macroeconomic and industry-specific issues.

How to master it: You can’t control the economy, but you can plan ahead. Although it might seem counterintuitive, apply for a business line of credit when your business is strong.

“Banks will always be happiest to loan you money when you don’t need it,” Farris says. If conditions worsen, they may reduce the credit line or take it away, he adds, but at least you have some cushion for a while if things go south.

Collateral

What it is: Assets that are used to guarantee or secure a loan.

Why it matters: Collateral is a backup source if the borrower cannot repay a loan.

How it’s assessed: From hard assets such as real estate and equipment; working capital, such as accounts receivable and inventory; and a borrower’s home that also can be counted as collateral.

How to master it: Picking the right business structure can help protect your personal assets from being seized by a lender if you’re sued or if a lender is trying to collect. Forming a legal entity helps mitigate that risk.

The Types of Loan to Choose From

The best choice depends on your own circumstances. Most personal loans are unsecured with fixed payments. But there are other types of personal loans, including secured and variable-rate loans.

Personal Loans

Most banks, online and on Main Street, offer personal loans, and the proceeds may be used for virtually anything from buying a new 4K 3D smart TV to paying bills. This is an expensive way to get money, because the loan is unsecured, which means that the borrower doesn’t put up collateral that can be seized in case of default, as with a car loan or home mortgage. Typically, a personal loan can be obtained for a few hundred to a few thousand dollars, with repayment periods of two to five years.

Borrowers need some form of income verification and proof of assets worth at least as much as the amount being borrowed. The application is typically only a page or two in length, and the approval or denial is generally issued within a few days.

Credit Cards

Every time a consumer pays with a credit card, he or she is taking out a personal loan. If the balance is paid in full immediately, no interest is charged. If some of the debt remains unpaid, interest is charged every month until it is paid off.

The average credit card interest rate carried a 16.88% APR at the end of the fourth quarter of 2019, according to a the Federal Reserve—down slightly from the 2019 second quarter rate of 17.14%, but almost exactly where it was (16.86%) at the end of the fourth quarter of 2018.³ Penalty rates, for consumers who miss a single payment, can get bumped even higher—for example, to 31.49% on at least two of HSBC’s Mastercards

Home-Equity Loans

People who own their own homes can borrow against the equity they have built up in them. That is, they can borrow up to the amount that they actually own. If half of the mortgage is paid off, they can borrow half of the value of the house, or if the house has increased in value by 50%, they can borrow that amount. In short, the difference between the home’s current fair market value and the amount still owed on the mortgage is the amount that can be borrowed.

The biggest potential downside is that the house is the collateral for the loan. The borrower can lose the house in case of default on the loan. The proceeds of a home equity loan can be used for any purpose, but they are often used to upgrade or expand the home.

A consumer considering a home-equity loan might keep in mind two lessons from the financial crisis of 2008-2009:

• Home values can go down as well as up.
• Jobs are in jeopardy in an economic downturn.

Home-Equity Lines of Credit (HELOCs)

The home-equity line of credit (HELOC) works like a credit card but uses the home as collateral. A maximum amount of credit is extended to the borrower. A HELOC may be used, repaid, and reused for as long as the account stays open, which is typically 10 to 20 years.

Like a regular home equity loan, the interest may be tax-deductible. But unlike a regular home equity loan, the interest rate is not set at the time the loan is approved. As the borrower may be accessing the money at any time over a period of years, the interest rate is typically variable. It may be pegged to an underlying index, such as the prime rate.

Credit Card Cash Advances

Credit cards usually include a cash advance feature. Effectively, anyone who has a credit card has a revolving line of cash available at any automatic teller machine (ATM).

This is an extremely expensive way to borrow money. To take one example, the interest rate for a cash advance on the Fortiva credit card ranges from 25.74% to 36%, depending on your credit.⁶ Cash advances also come with a fee, typically equal to 3% to 5% of the advance amount or a $10 minimum. Worse yet, the cash advance goes onto the credit card balance, accruing interest from month to month until it is paid off.

Small Business Loans

Small business loans are available through most banks and through the Small Business Administration (SBA). These are typically sought by people setting up new businesses or expanding established ones.

Such loans are granted only after the business owner has submitted a formal business plan for review. The terms of the loan usually include a personal guarantee, meaning that the business owner’s personal assets serve as collateral against default on repayment. Such loans usually are extended for periods of five to 25 years. Interest rates are sometimes negotiable.

The small business loan has proved indispensable for many, if not most, fledgling businesses. However, creating a business plan and getting it approved can be arduous. The SBA has a wealth of resources both online and locally to help get businesses launched.

What is the Lending Process

Complete the application
Your lender will assist you to fill out a loan application.

Get preapproved
After reviewing your completed loan application, the lender can give you a preapproval letter, a written letter that confirms the price of home you can purchase.

Processing
Your home mortgage specialist collects the necessary financial documents to process your loan. The property is appraised to determine its fair market value.

Receiving approval
The lender will review your application and financial information to make their lending decision. If your application is declined, they may recommend steps you can take in order to obtain financing.

Pre-closing
In this phase, sometimes referred to as “loan settlement,” your home mortgage consultant will work with you to secure any required title insurance and real estate documents to protect against other parties claiming ownership of the property.

Closing
The day and time when all final mortgage documents are signed and all necessary payments are transferred to complete the purchase of a house. Also known as the settlement date.

Loan servicing
The steps taken to maintain a loan from the time it’s closed until it’s paid off, for example billing the borrower, collecting payments, and making contract changes. It’s not uncommon to have loan servicing transferred between many companies during the life of a loan.

Basic Principles of Lending

These basic principles of bank lending affect bank’s loan policies, credit operations to a great extent. Here are some important principles of lending :

Safety

Safety is one of the most important fundamental principles of lending. Banks deal with public money so the safety of money from the public is first priority of the bank. When a banker lends, he must be sure that the money is in a safe hand and will definitely come back at regular intervals as per the repayment schedule without any default. The safety of funds depends on the nature of security, the character of the borrower, repayment capabilities and financial health of the borrower.

Liquidity

Liquidity is also an important principle of lending in banking. Bank lends public money which is repayable on demand by depositors so bank lends for a short period. A banker must ensure that money will come back on demand or as per the repayment schedule. The borrower must be able to repay the loan within a reasonable time after the demand for repayment is made.

‘Liquidity’ has as much importance as ‘safety’ of funds. The reason behind it is that the bulk of their deposit is repayable on demand or at very short notice. Bankers must ensure that money is locked up for a long time. If loan becomes illiquid, it may not be possible for bankers to meet their obligations vis a vis depositor.

Profitability

This is the cardinal principle for making an investment by a bank. It must earn sufficient profits. It should, therefore, invest in such securities which was sure a fair and stable return on the funds invested. The earning capacity of securities and shares depends upon the interest rate and the dividend rate and the tax benefits they carry.

Stability

Another important principle of a bank’s investment policy should be to invest in those stocks and securities which possess a high degree of stability in their prices. The bank cannot afford any loss on the value of its securities. It should, therefore, invest it funds in the shares of reputed companies where the possibility of decline in their prices is remote.

Government bonds and debentures of companies carry fixed rates of interest. Their value changes with changes in the market rate of interest. But the bank is forced to liquidate a portion of them to meet its requirements of cash in cash of financial crisis. Otherwise, they run to their full term of 10 years or more and changes in the market rate of interest do not affect them much. Thus bank investments in debentures and bonds are more stable than in the shares of companies.

Diversity

In choosing its investment portfolio, a commercial bank should follow the principle of diversity. It should not invest its surplus funds in a particular type of security but in different types of securities. It should choose the shares and debentures of different types of industries situated in different regions of the country. The same principle should be followed in the case of state governments and local bodies. Diversification aims at minimising risk of the investment portfolio of a bank.

The principle of diversity also applies to the advancing of loans to varied types of firms, industries, businesses and trades. A bank should follow the maxim: “Do not keep all eggs in one basket.” It should spread it risks by giving loans to various trades and industries in different parts of the country.

It is largely the government securities of the centre, state and local bodies that largely carry the exemption of their interest from taxes. The bank should invest more in such securities rather than in the shares of new companies which also carry tax exemption. This is because shares of new companies are not safe investments.

What is the 28 36 Rule

The 28/36 rule is a common-sense rule for calculating the amount of debt an individual or household should take on. The 28/36 rule states that a household should spend a maximum of 28% of its gross monthly income on total housing expenses; it should spend no more than 36% on total debt service, including housing and other debt such as car loans.

Mortgage lenders and other creditors use this rule to assess borrowing capacity, the premise being that debt loads in excess of the 28/36 parameters are likely difficult for an individual or household to sustain and may eventually lead to default.

Understanding the 28/36 Rule

The 28/36 rule is important for individuals to be aware of when applying for all types of credit. The 28/36 rule is a standard most lenders use in addition to a borrower’s credit score. The underwriter pulls all the data used to arrive at a credit decision from a borrower’s credit record on file with a partnering credit data agency.

An individual’s credit score is often a primary factor involved with the approval of a credit application. Lenders often require that a credit score falls within a certain range before considering credit approval. However, a credit score is not the only consideration. Lenders also consider a borrower’s income and debt to income ratios.

The 28/36 rule is a guide lenders use to structure underwriting requirements. Some lenders may vary these parameters based on a borrower’s credit score, potentially allowing high credit score borrowers to have slightly higher debt-to-income ratios.

Lenders using the 28/36 rule in their credit assessment may include questions about housing expenses and comprehensive debt accounts in their credit application. Each lender establishes his or her own parameters for housing debt and total debt as a part of their underwriting program. This means that household expense payments, primarily rent or mortgage payments, can be no more than 28% of the monthly or annual income. Similarly, total debt payments cannot exceed 36% of income.

Example of the 28/36 Rule

For an individual or a family who brings home a monthly income of $5,000, if they want to adhere to the 28/36 rule, they could budget $1,000 for a monthly mortgage payment and housing expenses. This would leave an additional $800 for making other types of loan repayments.

What are the 4C’s of Mortgage

When deciding whether to make a loan, lenders evaluate the four Cs:

• Capacity to pay back the loan. Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the means to take on a mortgage comfortably.
• Capital. Lenders consider your readily available money and savings plus investments, properties, and other assets that you could sell fairly quickly for cash. Having these reserves proves that you can manage your money and have funds, in addition to your income, to pay the mortgage.
• Collateral. Lenders take into account the value of the property and other possessions that you’re pledging as security against the loan.
• Credit. Lenders check your credit score and history to assess your record of paying bills and other debts on time. (Even if you don’t plan to buy a home now, it’s always a good idea to build and maintain strong credit. Landlords often check it to make sure that you can pay the rent. It’s also important if you want to apply for a mortgage or other credit line in the future, such as a student loan, car loan, or credit card.)

Money Lending Organisation

SoFi

SoFi is a US-based personal finance company that provides student loan refinancing, personal loans, mortgages and more

Great rates and great benefits. Two essential promises that SoFi, a leading personal finance innovator offers its customers. The financial services company is built around a key goal: to help people get their money right.

It does this through innovative technology and a dedication to customers’ financial independence and the realisation of their ambitions.

SoFi believes that there are four key principles to meet this objective: 

• Attack debt with a plan
• Always have a safety net
• Put your money to work
• Save for retirement and other goals

Prosper Marketplace

Prosper Marketplace operates a marketplace lending platform designed to facilitate peer-to-peer lending. The company’s platform lists loan requests with low, fixed-rate loans and no hidden fees or prepayment penalties, enabling borrowers to easily gain access to affordable personal loans and investors to earn solid returns via a data-driven underwriting model.

Peerform

Peerform is a peer-to-peer lending platform that connects people who want to borrow money with investors. Peerform provides 3-year terms personal loans ranging from $1,000 to $25,000: Borrowers create listings for a fixed-rate personal loan and are then funded by investors who chose their target return and build their portfolios. Peerform offers investors a new asset class with which they can diversify and optimize their portfolio.

Peer-to-peer lending is an alternative to the banking system that provides better interest rates for borrowers along with better returns for investors, by eliminating intermediation between parties.

Peerform was created by a solid team of professionals from financial services, strategy consulting, technology, and consumer products

Kiva

Kiva (commonly known by its domain name, Kiva.org) is a 501(c)(3) non-profit organization^[ that allows people to lend money via the Internet to low-income entrepreneurs and students in 77 countries. Kiva’s mission is “to expand financial access to help underserved communities thrive.”

Since 2005, Kiva has crowd-funded more than 1.6 million loans, totaling over $1.33 billion, with a repayment rate of between 96 and 97 percent. Over 1.8 million lenders worldwide use the Kiva platform.

Kiva relies on a network of field partners to administer the loans on the ground. These field partners can be microfinance institutions, social impact businesses, schools or non-profit organizations. Kiva includes personal stories of each person who needs a loan so that their lenders can connect with their entrepreneurs on a human level.

Neither Kiva itself nor its individual lenders collect any interest on the loans it facilitates. However, Kiva borrowers do pay interest on most loans to its Field Partners. Kiva is supported by grants, loans, and donations from its users, corporations, and national institutions. Kiva is headquartered in San Francisco, California.

Aella Credit

Aella Credit provides instant credit solutions that eliminates the hassle of standard loan applications and enables employee to borrow at competitive and fair rates through their employers. Individuals can download the application through Android devices. Benefits of the platform are offered to employees, companies, and investors. The offices of the company are located across the United States and Nigeria.

Grameen Bank

Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost-effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic conditions of the poor who have been kept outside the banking orbit on the grounds that they are poor and hence not bankable.

Professor Muhammad Yunus, the founder of ‘Grameen Bank’ and its Managing Director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, ‘these millions of small people with their millions of small pursuits can add up to create the biggest development wonder.’

Funding Circle

Funding Circle are the world’s leading marketplace for business loans. They aim to help businesses access fast, fair finance, and investors earn better returns, by cutting out the costs and complexities of dealing with banks.

Based in London, the company aims to build a better financial world and ignite opportunities for businesses and investors by providing a better deal for everyone.

Between 2010 and 2016 alone they have helped 33,578 business access finance and facilitating the lending of some £3.2 billion.

Funding Circle’s core principles, which staff are asked to follow in their day-to-day roles, include: think smart, make it happen, be open, stand together and live the adventure.

The company is led by co-founder and Chief Executive Officer Samir Desai CBE, who is described as a genuine, authentic and transparent leader who drives the business and doesn’t shy away from communicating tough commercial decisions.

StreetShares

StreetShares is bringing trust and community to digital lending for American small businesses.

StreetShares brings like-minded investors together with small business owners looking for funding to grow. Business owners pitch their business through a 3-step, mobile-enabled application, and investors compete to fund them through an auction. The lowest bids combine to form a single loan at the lowest available interest rate. StreetShares lends to all qualified American small businesses but has a particular focus on providing veteran business loans. StreetShares is veteran-run.

One Finance Limited

One Finance and Investments Limited provides software solutions. The Company offers mobile lending platform that enables users to take short-term loans to cover unexpected expenses and urgent cash needs. One Finance and Investments serves customers in Nigeria.

Zopa

Zopa is a company that provides a peer-to-peer (P2P) lending service for personal loans and investments. The company provides customers with personalized loan rates. It also enables investors to lend to consumers directly through its P2P lending platform.

Page Financials

Page International Financial Services Limited is an innovative retail finance institution (Licensed by Central Bank of Nigeria) in Nigeria. Page Financials provides quick loans, investment and other financial services through our various channels including internet and mobile app platforms. Their outstanding products and services are created to suit the financial requirements of our diverse clientele

Lenmo Inc

Lenmo is a mobile app that facilitates peer-to-peer lending. The intuitive design easily connects borrowers in need of a small loan – up to $5000 – and lenders who are looking to make a return. Lenmo offers investors a less volatile environment compared to traditional investment channels while giving borrowers, an underserved market, alternatives to bank loans, credit cards, and payday loans.

Investor Benefits:

1. Diversify your portfolio in a market with low volatility
2. Easily select investments that suit the level of risk you’re comfortable with
3. Enjoy no fee investing

Borrower Benefits

1. Get money in as little as few as 3 clicks
2. Choose a loan with your own payback terms
3. Request a loan without impacting your credit score

Fundbox

Fundbox is a fintech company developing a B2B payment and credit platform. It provides small businesses with a line of credit and invoice financing for unpaid customer invoices. The company also uses big data analytics, engineering, and predictive modeling to manage cash flow for small businesses and freelancers.

First Internet Bank of Indiana

First Internet Bank of Indiana provides banking services. The Company specializes in online banking, business loan, saving accounts, debit card, mobile banking, checking accounts, personal loan, e-statement, direct deposit, real estate loan, and insurance services. First Internet Bank of Indiana operates in the United States.

Lendio

Lendio is a company that develops a financial application designed to offer online loan service. It offers a platform for connecting small-business owners with active banks, credit unions, and other lending sources, enabling start-ups and small size organization to get funding for their growth.

Traditional Bank

Traditional Bank Inc. is a commercial bank. The Bank attracts deposits from the general public and uses those funds to originate a variety of loans.

Accion US Network

The Accion U.S. Network is an American nonprofit microfinance organization headquartered in New York, NY. It is the largest and only nationwide nonprofit microfinance network in the U.S.

Finca International

FINCA International offers global charitable microfinance services. The Company provides small loans and other products to those turned down by traditional banks and gives the poor the right to financial services.

Caja de Compensación de Asignación Familiar

The Family Allowance Compensation Funds (CCAF), or simply compensation funds , are Chileancorporations under private law, with their own assets and not for profit. Its purpose is the administration of social security benefits that tend to the development and well-being of the worker and his family group , protecting him from social and economic contingencies.

Bankrate

Bankrate is a provider of financial publishing services in the United States. The company’s services operates as a leading online publisher, aggregator, and distributor of personal finance content specializing in financial rate information, rate data and financial content on financial products such as mortgages, credit cards, new and used automobile loans, money market accounts, certificates of deposit, checking and ATM fees, home equity loans and online banking fees.

M-Pesa

M-Pesa (M for mobile, pesa is Swahili for money) is a mobile phone-based money transfer service, payments and micro-financing service, launched in 2007 by Vodafone Group plc and Safaricom, the largest mobile network operator in Kenya.

It has since expanded to Tanzania, Mozambique, DRC, Lesotho, Ghana, Egypt, Afghanistan, South Africa, India, Romania, and Albania. M-Pesa allows users to deposit, withdraw, transfer money, pay for goods and services (Lipa na M-Pesa), access credit and savings, all with a mobile device.

Equity Bank

Equity Group Holdings Limited, formerly Equity Bank Limited, is a Kenya-based commercial bank. The Company provides financial services to individuals and small and medium sized enterprises. The Company operates in six geographical markets: Kenya, Uganda, South Sudan, Rwanda, Tanzania and Democratic Republic of Congo. Its three customer facing lines of businesses include consumer, small and medium enterprises (SME’s) and corporate.

The consumer business line focuses on salaried customers or customers receiving other regular remittances, such as pension. The facilities granted under its SME’s line of business are for purposes of meeting working capital needs, property development or acquisition of assets. The corporate line of business comprises large enterprises. The Company offers a range of products, including Equity loan, Vijana loan, Fanikisha loan, Farm input, Mortgage loan, Asset finance loan, Trade finance, Development loan, Business Loan and Biashara Imara.

Club Money

The Money Club is a provider of a mobile platform for peer to peer chit funds. It enables people to form closed clubs within which they can save, invest, and borrow money.

Goldman Sachs

Goldman Sachs provides a wide range of investment banking, securities, and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments, and individuals. Widely considered the most prestigious name in investment banking, Goldman is headquartered in New York, and maintains offices in London, Frankfurt, Tokyo, Hong Kong, and many other cities around the world. 

Goldman is also widely considered to be the top dealmaker on Wall Street. Underscoring its prowess in the deal markets, for the first nine months of 2019, the firm ranked No. 1 in worldwide in announced M&A deal volume, No. 1 in U.S. announced M&A volume, No. 1 in EMEA (Europe, the Middle East, and Africa) announced M&A volume, No. 1 in U.S. equity and equity-related offerings, and No. 1 in U.S. IPO volume.

Try to compare rates from at least two personal loan companies before you apply. Consider credit requirements, loan amounts, terms and other factors.

Take a look at this example comparing these two personal loan companies:

Discover
Minimum FICO score: 660
Loan amounts: $5,000 to $100,000
Loan terms: 24 to 84 months
Best feature: No fees except for late fees

Sofi
Minimum FICO score: 680
Loan amounts: $2,500 to $35,000
Loan terms: 36 to 84 months
Best feature: Co-borrowers are accepted.