Buddy Loans launched in 2014 and offer medium term loans of between £1000 and £7500. Loan terms range from one to five years and must be backed by someone who will make repayments should the borrower default on their payments.
They previously required your backer to be a UK homeowner but now, if they are not, offer loans of up to £3000 for a maximum of 36 months.
While each application is dealt with on an individual basis, the technology put in place by Buddy Loans allows them to offer a completely automated underwriting process and fast payouts to their customers.
Each application is carefully considered and even if you have a bad credit rating or CCJ, as long as your “buddy” fits the required criteria, you should be eligible for a loan. Under most circumstances your backer will never be contacted as long as you continue to make your payments. They could be a friend or family member (though not financially dependent on you or your spouse) but must be a UK homeowner and have a good credit rating. They must be at least 18 years of age and no more than 75 throughout the loan term.
At the moment Buddy Loans offer an interest rate of 49% and there are no upfront fees. They believe in responsible lending so they check to make sure your application is affordable in your circumstances. Funding is usually available within 24 hours as long as both the applicant and the backer can be reached by telephone once the application has been received. Your backer should be aware of the implications of the role and it is important that they read all the documentation carefully.
The customer services are available from Monday to Thursday from 9am to 7:30pm and until 4:30pm on Fridays. You can manage your account online 24 hours a day.
