Warning About Borrowing

  • Loans from The Little Loan shop are for a short term only, usually 2-6 weeks or until your next pay. Don't use this type of loan if you need to make repayments over a longer period. Not to be used as an ongoing source of credit.

  • The most we lend is $600, depending on your income and expenses. We want to be sure the payments are affordable for you

  • Late or missed repayments may result in serious credit and money problems for you. If you miss a payment, then you may be charged a fee of $10. Interest on the loan will continue to be charged at 200% per year. Default interest of 30% per year will be charged on the overdue amount. After 60 days of non-payment, we may refer your account to a collection agency. This will negatively affect your credit rating and incur extra charges.

 

Some things you should think about before taking out a loan with The Little Loan Shop are:-

 

If you consider this loan option is not for you, do not sign the credit contract or submit an application for a loan.

  • The Little Loan Shop loans are designed for a short period of borrowing. Don't take one out if you need to borrow money for more than a few weeks. We intend our loans be used to help cover urgent costs such as car repairs, dental or doctor emergencies, and other such bills

  • Don't use payday loans or short term cash loans for non-essentials such as holidays, new cars, new fashion accessories etc.

  • Note that you must start paying off your loan on your next pay day. We direct debit the agreed repayment amount from your bank account on this day.
 

Make sure you understand what you are committing to when you sign up for a loan

We will do our best to make sure you understand everything about your rights and obligations when you take out a loan. To help with this you will be provided with a Credit Contract and Disclosure Statement to sign which includes the rights and responsibilities for both you and us. That Credit Contract includes the repayment amounts, terms, conditions, interest rates and fees. And it also includes the obligations that come with having a loan, and the results of not repaying it. As well as extra collection fees as referred to in the credit contract the results of not repaying the loan are likely to include a bad credit rating.

 

Lending Advice Video

Not sure if you should get a loan? Look at the videos called "It's all good" from the NZ Commerce Commission which explain your rights. It's all good

You can see an example of a Credit Contract or using the link at the bottom of our website.

 
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