MoneyShop

MoneyShop: personal loans in New Zealand

MoneyShop is a New Zealand finance company that offers personal loans online and in branches. According to its own presentation, it has been operating in the country for over 28 years and describes itself as one of the highest-rated finance companies in New Zealand on Trustpilot, with a rating of 4.9 out of 5 based on more than 1,000 reviews. The company serves customers nationwide and maintains a network of branches in Auckland and Northland.

Loan products

MoneyShop's catalogue covers various types of personal credit, all with amounts ranging from NZ$200 to NZ$20,000. The available options include:

• Unsecured loans, with a maximum of $7,000.
• Emergency loans for unexpected expenses, such as hospital bills or last-minute travel.
• Debt consolidation loans, which allow you to combine several debts into one with a fixed rate.
• Car loans, intended for buying or upgrading a vehicle.
• Holiday loans.
• Wedding loans.
• Beneficiary loans.

The company also offers secured loans, accepting cars or property as collateral, provided there are no outstanding charges. If there is an outstanding balance on the security, MoneyShop may assess paying it off and incorporating it into the new loan.

Application and approval process

You can apply online, at a branch or by phone. According to the information on the website, the online form takes approximately two minutes and requires basic personal details and the reason for the loan. The company states that applications are usually processed the same day and that the money can be credited to the customer's account quickly, always subject to responsible lending checks and an affordability assessment.

Terms, rates and costs

MoneyShop publishes its loan terms on its website. Amounts range from NZ$200 to NZ$20,000, with terms ranging from 3 months to 3 years. The annual interest rate is 29.95% for both secured or refinanced loans and new unsecured loans, and remains fixed for the entire term of the contract. Interest is calculated by multiplying the unpaid balance at the end of the day by a daily rate, which is the annual rate divided by 365.

The company does not charge default interest. However, if the account falls into arrears, it may charge a daily default fee of $1 until the situation is regularised. Reversed payments incur a $5 charge, and attempts to contact you about missed payments may result in a letter fee of up to $50, $5 per phone call or $80 plus GST for a home visit. Third-party recovery costs are passed on to the customer without any additional margin.

There is a one-off establishment fee depending on the loan amount: $65 for loans from $200 to $499; $160 for $500 to $800; $300 for $800 to $5,000 with a term of three years or less; $310 for $5,000 to $15,000 with a term of three years or less; and $455 for more than $15,000 with a term longer than three years. Some set-up costs come from third parties, such as credit checks, PPSR register searches and security registration fees, and are passed on at cost. In addition, a daily administration fee of $0.55 applies while the account remains open. Statements are sent every six months; additional ones are free by email or cost $5 if requested in printed form. Early repayment of the loan may involve an average administration fee of $50, plus third-party security release costs.

Repayments are weekly. As an example, the website states that a $3,000 loan over 78 weeks involves a weekly payment of $58.87 and a total repayment of $4,592.86, which includes interest, the $300 establishment fee and the $0.55 daily administration fee, excluding optional or default fees. Another example shows that $1,500 over 52 weeks equates to $44.83 per week. Minimum repayments start at $30 per week.

Requirements and eligibility

To apply for a loan you must be over 18. The company states that it lends to all New Zealanders without discrimination, including those receiving benefits, provided they meet responsible lending criteria. Applications are subject to affordability checks and any supporting documentation requested.

Branches and service

MoneyShop has a physical presence in four locations: Otahuhu, Manukau and Henderson, in Auckland, and Northland, in the region of the same name. The company combines online service with the option to visit its offices, and offers a freephone number and an email address for enquiries. It also has a personal loan calculator on its website to estimate repayments without affecting your application.