Financial issues have been a problem that has accompanied man since the introduction of money. Having sufficient money to feed, clothe and provide shelter for oneself can be a herculean task sometimes.
Some people suffer to pull through every day, others once in a while while others don’t even see the problem in surviving as financial difficulties don’t affect them. This eventually led to the introduction of borrowing. Someone struggling for survival requests financial assistance from a balanced person with the requirement to pay back at some other time either with interest or not depending on the person lending the money.
Introduction
In this century, borrowing like many other services has been integrated into the internet. People can now request the services of loan apps to get money when they are in need. One major benefit of loan apps is that they save a person from public disgrace as some lenders tend to eventually harass people who come to them for help.
One such loan app is 5k Funds. 5k Funds is a loan app which connects people. It connects a person who wants to lend money from someone to a person who is willing to lend out his or her money
Benefits of 5K Funds
Flexible Loan
5k Funds is a very flexible loaning service. Unlike some services that only provide loans for a specific usage, (mortgage: loan used only for buying a house) 5k Funds provide loans that an individual can use for virtually anything including settling a previous debt, buying a slightly more expensive material or student survival purposes. This type of loan is called a personal loan.
While banks and other loan services give out personal loans too, they give out these loans in large amounts reaching the thousands of dollars range, 5k Funds can give out loans in small amounts of hundreds of dollars depending on the need of the person who wants the loan. Of course, they also give out large loans.
High-Interest Rate
This is one of the major problems with 5k Funds. Their interest rate tends to be very high. This is because most of the terms and conditions following the loan are determined by the person giving out the loan. Since 5k Funds connect someone who wants a loan to someone who has money to lend, the interest that follows the repayment of the loan is decided by the person giving out the loan.
Besides the interest, a certain amount of money to be paid before loan disbursement is also determined by the person giving the loan.
Late repayment of loans and other fees are also decided by the lender. This is quite problematic as some lenders will charge a large amount of money as fees. However, 5k Funds make up for this inconvenience by providing a wide list of lenders which a person can choose from. In this way, the borrower can pick the lender with a good interest rate as well as lower fees.
5k Funds Loan Requirements
5k Funds wins over many online loan services as they have almost no requirements for one to be qualified for a loan. Membership status is not required and minimum credit score is also not requested. Loan offers are given without these.
One of the few things required however is the income of the borrower. Both the nature of the job and financial status. This is required by the lender and not 5k Funds. This requirement is done so that the lender will be assured that the person he is borrowing from is capable of paying the loan borrowed.
5k Funds Loan Application
Despite the pros of 5k Funds, they also have their cons. Loan applications on 5k Funds can be quite problematic. Initially, the borrower is asked how much he intends to get and the time he intends to pay back. After this, personal information such as name, age, location, contact and address is requested. However, this is only the beginning.
The next set of questions asked while they can be deemed important, they can also be considered a breach of privacy. 5k Funds will request information on the debts that the borrower currently owes and the duration he or she has lived in their current address.
Another question asked is if the borrower can accept to pay certain amounts of money depending on how much they want to borrow. The questions get more personal as borrowers are further asked if they own expensive property such as a vehicle or a house, employment status, nature of their job, how the loan will be paid, salary or how much is made from their businesses and also when their next salary will be given to them.
These questions are quite personal to the borrowers yet to get the loan offer they will have to answer them as the lenders would like to be assured that their money will be returned to them.
Although the questions above are quite difficult, the next question is just purely extreme as the contact information of the borrower’s employer at his or her job is required so that the lender can contact them to verify that the borrower works for the employer. Lastly, bank information and loan reasons will be asked and on answering these questions, borrowers will be connected to lenders.
Review
Due to the amount of personal information requested by 5k Funds, users have complained and given them low reviews as the amount of information required is more than other loan services require. Besides that, their customer service can be described as under standard.
Although 5k Funds can contact users through their email, users cannot do the same. On the home page, there is only a link redirecting users to the loan menu and the privacy policy section. As for a number or email address to contact them, it’s nonexistent.
This along with the fact that sometimes users are not given their loans for various reasons even after filling in such private information has led to many negative reviews to be slammed at 5k Funds causing people to classify it as a scam site.
Conclusion
5k Funds is not a scam site however, if you intend to use the site as an avenue to get a loan, you should be ready to release a lot of private information, face high-interest charges and deal with poor customer support. Even with these, sometimes users are still not granted their loans.
