Technology makes the world move ever faster, and a British startup aims to bring that velocity to the world of financing: Wonga offers tiny, instant loans through online-only applications. The service makes loans of GBP 50 to GBP 200, all to be repaid within a month. Consumers can choose exactly how much to borrow for how long, using a simple slider tool to gain an instant understanding of how much the loan will cost them in total. Successful applicants see the money in their account less than 60 minutes after applying.
To encourage quick repayment, Wonga wields an eBay-style carrot rather than the bailiff-shaped stick: good borrowers get good ratings and are rewarded with increased flexibility on subsequent applications, while Wonga presumably reduces its costs for debt reclamation.
Though there's no need to point out that taking and providing easy credit is a slippery slope, small loans do offer consumers an alternative to credit card debt and bank overdrafts. And Wonga's focus on convenience and speed is something most banks could learn from. (Related: Quick loans by text message — An online pawnbroker for consumers in a pinch.)
Website: www.wonga.com
Spotted by: Ozgur Alaz
Wonga offers loans of £50 - £750 - learn more here: http://www.wonga.com/about-trust/
Great service - I've used them a couple of times and, although expensive, they do exactly what they say on the tin
Wonga does indeed offer loans of up to £750. Thanks for pointing that out, Jamey. Customers can initially request up to £200 and, as explained by Wonga, "providing you keep using the service responsibly, we'll gradually increase your Wonga trust rating, giving you more borrowing flexibility if you ever need it."
Regardless of how good the service is; I feel nobody should take a loan for which he is charged 2334% APR.
http://www.wiseclerk.com/group-news/countries/uk-need-a-loan-at-2334-percent-apr/
Dear Wiseclerk - 2334% is the ANNUAL rate...this is a 30 day loan. Use the sliders on the homepage of the wonga website to understand the cost of a 30 day loan.
Jaden, I perfectly well know that it is the Annual rate. APR is a standardized measurement to compare the interest rates of different loans.
See the comments in the link in my previous comment for a discussion with a Wonga representative on this issue
I wish to open this kind of business in my country
I have used wonga in the past and their customer service is terrible plus they add on lots of extra charges. Do not trust this company. Modern day Loan sharks