Glo loans parent company, Provident Personal Credit Ltd, have been in the loan business for over 100 years. They have a well-established customer services operation and a wealth of experience.
Loans are available between £1000 and £7000 over a period of between one and five years. They typical APR is around 49.5%.
Applicants will need to provide the name of a friend or family member who is prepared to act as their ‘backer’ i.e. someone who is willing to take on the loan repayments in the event that the borrower is unable.
Glo’s loans are aimed at people unable make use of mainstream borrowing options but need cash for the consolidation of more expensive debt or to make a large purchase like a car or holiday.
The loan will only be approved following conversations with both the borrower and their chosen backer. Glo say the backer will only be expected to settle the debt as a ‘last resort’. They will only need to give their own payment details if the borrower defaults and no alternative arrangements can be made. They will, however, be informed of any missed payments as soon as they take place. Glo say they believe this makes them different in this particular market in that they will do everything they can to try to come to an arrangement with the borrower until all sensible options fail.
As repayment information is passed to the credit reference agencies every time a payment is made it is also possible to increase your credit score as you pay off the loan.
Anyone can apply for a loan as long as they are not bankrupt or have an IVA or Trust Deed. The applicant will need to be able to prove that they can afford the repayments. The backer will need to have a good credit score, be aged between 18 and 70 and can be anyone as long as they are financially independent from the borrower (not their spouse for example). They do not need to be a homeowner as long as they fit the other criteria.