Wonga is a UK based startup which provides loan amounts of between £50-£750 which are to be repaid within 1 month.
The company, launched officially mid last year, allows new members to borrow up to £200 at first (subject to a credit check) with the amounts increasing as the individual repays smaller amounts – building up trust. Interest rates for the loans are 1% per month, equal to13.8% APR.
Wonga is funded to the tune of £3m by Balderton Capital who have also invested in growing P2P lender Zopa.
There’s undoubtedly a place for this type of service and although I haven’t personally been through the process myself (maybe I should?), comments from people who have seem to all be positive…assuming you pay back within the time given.
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via the great Springwise.
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