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Lending People Review

We review Lending People, offering personal and car loan. We cover the loans available, fees, pros and cons and everything you need to know to help decide if Lending People is right for you.
Updated 1 February 2024
Summary of Lending People:
  • Lending People is a vehicle-focused loan broker offering interest rates between 8.95% to 28.95% p.a.
  • Launched in 2012 by an Auckland based team, Lending People has grown to work with dozens of car dealers around New Zealand as their go-to broker to arrange finance for their customers through its lending partners. 
  • In early 2023, MTF Finance acquired Lending People, but the companies have kept their unique brands.
  • Lending People also offers personal and car loans direct to anyone who earns $600+ a week.
  • Loans are for amounts between [INSERT] and repayment terms are between one year and five years.
  • Lending People is not a lender like Harmoney, MTF Finance or Nectar; instead it's a broker like Simplify. The decision for MTF Finance to buy the business to offer anyone wanting to get a loan the choice of a range of lenders, not just MTF Finance.
  • Early repayment is permitted, but a fee is charged.
  • Lending People also plans to offer home loans in the future - our guide focuses on personal lending and car finance as this offering has not yet fully gone live.

In this guide, we look at what Lending People offers for borrowers. We cover:
Advertising Disclosure: MoneyHub may receive a payment if you make a purchase on our website. Such commercial arrangements have no influence on our independent reviews of financial products. Please refer to our advertising policy for more details.

Understanding Lending People's Minimum Borrowing Requirements

​Lending People specialises in providing loans for:
Application Criteria:
Borrowers must:
  • Be at least 18 years old.
  • Earn a regular income.
  • Afford the loan they are applying for.
  • Confirm identity with:
    • Valid New Zealand Driver's License.
    • Valid New Zealand or foreign Passport.
    • NZ Firearms License.
  • Provide proof of address.

Application Details Required:
  • Date of birth.
  • NZ residency status and citizenship.
  • Marital status.
  • Number of dependants.
  • Current address and time at this address.
  • Current living arrangement and rent payment details.
  • Property ownership status.

Employment and Income Information:
  • Current employment type and employer's name.
  • Current occupation and duration of employment.
  • Frequency and amount of income after tax.
  • Any potential changes that may affect future income.
  • Disclosure of any additional income sources.

Financial Commitments and Expenses:
  • Monthly living expenses, including utilities, phone/internet, groceries, transport, insurance, and medical costs.
  • Vehicle ownership.
  • Any Buy Now Pay Later accounts.
  • Existing loans or mortgages.
  • Credit card ownership.

Next Steps: Post-Submission Process
​Every application is assessed within 60 seconds, and will either be approved, declined or referred to an advisor for complex cases.
Responsible Lending Compliance:
  • Lending People is regulated to ensure protection for borrowers, with all decisions subject to responsible lending inquiries and checks.​
Christopher Walsh
MoneyHub Founder
​MoneyHub's Top Car Finance Options - Avoid high interest rates and fees with our trusted lenders.
  • Our car finance comparison research highlighted three leading car finance companies that reliably and consistently offer fair interest rates to most borrowers and are active lenders.
  • We suggest contacting dedicated car loan specialist Simplify - their team has a proven track record of offering market-leading interest rates and terms.
  • Low-fee personal lenders such as Harmoney offer car lending and offers a 100% online application process.
  • We also suggest contacting car-focused lenders like MTF Finance - MTF offers branch-based lending in locations all over New Zealand.
  • The more you compare, the better your chances of finding the best deal and financing your car for the lowest price.
  • Remember, the interest rate you agree to now makes a huge difference when you repay your car loan week after week.
  • Signing up for finance with a car salesperson is unlikely to be the best or most cost-effective option.
  • ​Advertising Disclosure: We may receive a commission if you take out a loan, but this does not influence our shortlist. Interest rates vary based on each borrower.
Our Three Trusted and Affordable Car Lenders Committed to Fast Quotes:

Pros and Cons of Lending People

Pros:
  • 100% online - all applications are assessed online within 60 seconds, helping potential borrowers 
  • Wise range in loan amounts: Borrowers can choose between small loans ($2,000) up to $50,000+ and choose to repay the amount weekly, fortnightly or monthly over 12 months to five years.
  • The team is widely regarded as being helpful per the 2,000+ online reviews published.

Cons:
  • Missed Payment Penalties: Penalties can be steep if payments are missed or defaulted on.
  • Early repayment fee: If you can clear your loan early, you'll be charged a fee for doing so. Some brokers and lenders waive such a fee, but Lending People doesn't.

But, be aware:
  1. Fees can be high if you miss payments or default. This is standard with any personal lender but it's essential to be aware of to manage your budget and personal finances.
  2. Always compare the offer you receive with other options. Our car loans, personal loans and debt consolidation loans comparisons list alternative lenders who are known for providing loans to borrowers with strong credit histories.

Have the best chance of loan success

The speed and success of an approved loan will depend on how well you complete your loan application. For the best success, be sure to:
  1. Be honest when answering all questions.
  2. Complete every section as best you can - given personal lending is often the second most expensive debt people take on (after their mortgage), many New Zealanders want to be able to explain their financial situation or have questions. If you need help, contact Lending People's team will support you as it's critical your answers are clear.

Lending People's Fees – How Fees Are Charged To Borrowers

Lending People has two fee types - loan fees and missed payment fees. Most borrowers will only detail with loan fees, but it's best to understand everything before signing any loan agreement. Our summary of fees below is specific to secured loans only.

Loan Fees:
  1. Platform Fee: This is a one-time fee added to your loan when it's set up, and will be between $195 and $995.

Missed Payment Penalties & Fees:
  1. Additional Interest for Defaults: If there's a default in payment, Lending People will levy an added interest, calculated daily. This will be at your standard yearly interest rate, plus an extra TBC%.
  2. Dishonoured Payment Fee: Should any payment you make to Lending People get declined by your bank, and as a result, Lending People's bank imposes a fee on them, they will pass that exact fee onto you. Currently, this fee is $TBC.
  3. Repossession-related Charges:
  • Issuance of Repossession Warrant: If circumstances lead Lending People to issue a repossession warrant for the vehicle, a fee of $TBC will be applied.
  • Recovery Costs (Enforcement-related): If third-party services are required to enforce the terms of Lending People's agreement, you will be charged the actual costs they incur. This could encompass fees from repossession agents, legal entities, or repair services.
  • Recovery Costs (Vehicle Sale): If Lending People sells the vehicle, an additional fee will be levied, which will be the actual cost associated with the sale. Lending People will always aim to choose a selling method that maximizes the vehicle's selling price.

If you have any questions regarding these fees, it's recommended to contact Lending People directly.

Lending People - Customer Experience and Feedback

Customer reviews published online consistently praise Lending People's service, specifically noting their dedicated employees who work hard to get loans over the line. Key observations from the 1,000+ reviews we read (published up to November 2023) include:
​
Positive Feedback:
  • Efficiency: Reviewers frequently commend the swift and smooth loan application process Lending People delivers.
  • Effective Communication: Positive experiences with the company's communication, marked by quick responses and clear guidance, are consistently noted.
  • Customer Service: Several reviews praise the overall customer service for being accommodating, particularly when handling unexpected issues.
  • Timeliness: Receiving funds on time and the speedy handling of applications are highlighted as positives.
  • Ease of Process: Customers appreciate the simplicity of the loan acquisition process, which is often described as stress-free and straightforward.

Areas for Improvement:
  • Privacy Concerns: Some customers express discomfort with sharing bank login information during the application process, despite assurances of security.
  • Interest Rate Clarity: There's a noted instance of an interest rate discrepancy, prompting a need for the company to verify and update public information to avoid potential misunderstandings.

Overall Sentiment:
  • The majority of the feedback is overwhelmingly positive, with a strong emphasis on the company's professionalism and quick service.
  • While minor concerns have been raised, the company's active engagement and resolution efforts indicate a dedication to continuous improvement and customer satisfaction.​

Lending People - Our Conclusion

  • Prospective borrowers should be aware of potential penalties tied to missed payments and ensure they fully understand the implications of any loan. Comparing Lending People's offer with others in the market and being thoroughly informed can assist in making the best financial decisions.
  • Understanding the total cost of the loan and comparing market offerings is crucial to ensuring the best financial decision, whether it be a loan for car finance, debt consolidation or a personal loan for anything else.
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