With the number of short term loans and short term loans providers increasing every day in the UK, it is inevitable that some sort of diversification and specialisation will occur. This week it is the turn of a company called Zebit.com, a short term loan company that believes it has to offer one of the most innovative short term loan deals in the country.
Zebit thinks that the short term loans industry badly needs a bit of innovative thinking and is determined to set an ethical example, according to a press release put out by the online short term loans company, which was set up only last year.
The press release talks about its new policies, which will help to guide borrowers to a more realistic and responsible repayment pattern.
So, what is Zebit offering which other payday and instant cash loans companies are not doing?
First of all, it will allow a flexible repayment term, so that borrowers choose whether they want a day, a week, a month or up to a maximum of seven months. Borrowers will also get to choose when they make their regular repayments and can select a weekly or a monthly repayment system.
Like a lot of its competitors, Zebit claims that its loans will be instant cash loans, albeit with some sort of credit checking, although the press release does not mention the nitty gritty here. What will be a little bit different will be that borrowers get another piece of rectangular plastic. This will be a card specifically set up with a Zebit account and will use the Mastercard system. Loans applied for are loaded on to the card account “instantly” and are prepaid cards so can be used anytime or anywhere, just like a debit card from a bank.
Zebit’s press release does not pass comment on whether it thinks some borrowers will use the new card with as much common sense as they might treat any other bit of plastic.
The other innovation the loans company has introduced is something called “Cashback.” Zebhit’s Sales and Marketing Director, Chris de Boer, acknowledges that the short term loans sector has some pretty high interest rates, so it has brought in its “Cashback” system to supposedly encourage borrowers to pay back their loans by the due date. Borrowers get some money back as a “reward for good behaviour” – up to 25% of the loan in some cases, if they pay back on time.