The Lending People review
Offering both secured and unsecured loans, the Lending People is a broker that wants to help you fund your next big purchase.
Updated 11 December 2023
The breakdown
- The Lending People provides secured and unsecured personal loans, car finance and debt consolidation loans.
- The application process can be entirely online, but The Lending People does provide advisers if needed.
- As a broker, a broker fee will apply on top of any other fees.
Key loan details
- Interest rate: 8.95% – 29.95% p.a.
- Minimum loan amount: $1,000
- Available terms: 1 – 7 years
- Secured or unsecured: Both
- Maximum loan amount: $200,000
- Establishment fee: $174
Author: Kevin McHugh, Head of Publishing at Banked.
About The Lending People
Based in Auckland, The Lending People is a loan broker that, like many other brokers, wants to make lending easy.
It works with a network of lending partners, including The Cooperative Bank, Finance Now and Latitude Financial Services. Offering personal loans, debt consolidation loans and vehicle finance, it can provide an initial decision on loan applications in 60 seconds.
The Lending People is part of the Insurance & Financial Services Ombudsman Scheme (IFSO) dispute resolution scheme and holds a license issued by the Financial Markets Authority (FMA)
Loans available from The Lending People
The Lending People can offer loans from 8.95% p.a. for a number of purposes, but the maximum loan available differs across each of its products. This is one of the lower starting rates out there, but you will only get this rate if you meet specific criteria.
Personal loans
If you need a home loan for home renovation, a holiday, or pretty much anything else, The Lending People may be able to help you.
For personal loans, funding is available from $1,000 to $75,000 and the broker may even be able to help those with bad credit get a loan (although it’s important that all applicants have a steady income).
Debt consolidation loans
If you want to make debt from credit cards, store cards, or other loans more manageable, a debt consolidation loan is an option to consider.
The Lending People offers debt consolidation loans of up to $150,000 and can provide an initial decision on applications in 60 seconds through its online application form. This is obviously fast, but remember not to rush into a loan without considering your options first.
A good debt consolidation loan with a favourable interest rate may be a strong option if you’re looking to simplify repayments and get out of debt faster, but it’s not the right choice for all people and circumstances. Check out our guide to debt consolidation loans to find out more.
Vehicle finance
The Lending People also provides vehicle finance, with car loans available for sedans, utes, and most other types of vehicle.
For vehicle finance, it accepts applications for loans of up to $200,000 so there’s not much that can’t be covered with a loan from the broker.
It can provide pre-approval on all car loans so you can nail down exactly how much you will have available to spend and can focus on getting the best deal on your new vehicle.
Fees
The Lending People has recently revised it’s fees to make them much more simple and clearer (not to mention, lower).
It now charges a loan establishment fee of $174 for loans of any size. This compares well with a number of its competitors. The Lending People doesn’t charge monthly fees or early repayment fees.
In some circumstances, The Lending People may refer you to one of several finance companies it partners with to fulfil your loan application. These partners have their own own fees so be sure to confirm what these are before you proceed.
Key features
We take a look at some of the features to bear in mind when looking at a loan with The Lending People.
Speak to an adviser
While The Lending People does promote the ease by which customers can apply for a loan 100% online, it does have advisers available if you’d prefer to speak to someone about your lending needs.
We appreciated this option and think that being able to speak to an adviser can be especially beneficial if you’re looking for a loan or if you have slightly unusual or complex financial circumstances.
If you do choose to chat with an adviser, it’s still important to factor the advice you receive with information from other sources, including your own research, so you will be able to make the most informed decision when considering a loan.
Borrowers with poor credit considered
There are relatively few financial institutions in New Zealand that will consider lending to those with poor credit. However, thanks to its access to a network of different lenders, The Lending People can help those with a spotty credit history get a loan.
Remember that all lenders have their own criteria against which they assess applicants. This means that even those lenders who do consider bad credit applicants, you must still be able to show you can meet your repayments without significant difficulty.
For example, as part of its eligibility criteria, the broker also states that applicants must have an income of at least $500. We appreciate this clarity and we would like to see all lenders and brokers provide this kind of information up front to customers.
Pre-approval is available
Being pre-approved for a loan means that you have been assessed and conditionally approved for a loan. This includes how much you can borrow, the interest rate you’ll get and how long the loan term is.
Pre-approval is particularly helpful when it comes to vehicle finance. It means you can focus on finding and purchasing the car you’re looking for, plus it means you’ll be in a stronger position when dealing with car dealers.
Eligibility requirements
Although its partner lenders will have their own eligibility criteria, The Lending People does set out its own set of basic requirements for those at the application stage.
- Age: You must be at least 18 years old.
- Income: You must have an income of at least $500 per week. To prove this you must either provide access to your online banking through a secure checking service, or separately provide your most recent 3 months bank statements.
- Proof of ID: You must be able to provide a current NZ driver’s licence or passport.
Pros and cons of a Lending People loan
Pros
- The broker can draw on a network of lenders and banks to find a suitable loan.
- We like that the Lending People can provide both secured and unsecured loans, something not all brokers can offer.
- The online application process is quick, but advisers are also available if you would prefer to chat with someone.
- Loan terms can be up to 7 years, which is longer than many lenders can offer and will appeal to those looking for a longer repayment period.
Cons
- The Lending People charges new customers a broker fee for successfully arranging loans.
- As it’s a broker, it’s impossible to know all the fees that are involved until you apply.
Verdict
We like that The Lending People offers a wide range of lending options – from secured to unsecured loans for a car purchase, debt consolidation, and beyond.
Its website is easy to use but it’s also great that potential customers can choose to speak to an adviser if they would prefer to discuss their lending needs in detail.
Unfortunately, a broker fee that could be as much as $995 will apply if you decide to take out a loan through The Lending People. This means that while they may do the running around to find a loan for your needs, there is a cost to pay for that convenience. We would also like to see more transparency around what fees its partner lenders charge so there is more certainty upfront.
Overall, we liked The Lending People’s offering with its wide network of lenders and easy-to-navigate website. Just be conscious of the broker fee involved with all loans and make sure you’re getting the best rate and fees when you factor this in.
