One reason an employment check is needed for a cash loan is to make sure you can afford to make the repayments. This is because cash loans are classed as unsecured loans.
Secured loans are secured by some form of collateral. This means that in the event you don’t make your repayments the lender can take that collateral from you to make up for their loss.
An unsecured loan is one that is backed only by the borrower’s creditworthiness, rather than by some type of collateral. If you default on an unsecured loan the lender can’t get their money back…at least not straight away. Beware - if you do this you’re likely to find yourself being sought by a debt collection agency, or even worse, in court!
Verifying your ability to make repayments and still afford to live is part of being a responsible lender. In 2015 the government introduced consumer credit laws aimed to give people greater protection when borrowing money and ensuring they could afford to repay their loans. Responsible lenders must make reasonable enquiries before giving a loan to be satisfied that it meets the borrower’s needs and that the borrower will be able to make repayments without suffering substantial hardship. There’s more to it than that so if you want to know more you can read about it on MBIE’s website.
The employer check, of course. At Moola, being a responsible lender and checking this is top priority. We’ll only ever loan you up to 30% of your income and we check this when we contact your employer or payroll person to confirm your details.
An employment check is also a way to confirm your identity. These days, many short term loan providers operate online. At Moola, our process is 100% online and while we don’t require any ID from you, we use the employer check process to confirm your identity. We take fraud very seriously and this check helps us ensure that no one else is using your details to fraudulently obtain a loan.
We recommend having a read over our Q&A page before applying so you know what to expect. The employer check is often the biggest hold up in getting approval so letting them know we’ll be in touch will help speed things up so we can approve your cash loan as fast as possible.
One other thing to know – we only do an employer check to confirm your identity, employment status and income; we don’t share the reason you’ve said you need the loan, that’s between you and us only.
Design your loan using our easy slider bar calculator on the homepage; decide how much you need and when you’d like to pay it back and we’ll show you exactly how much you’ll owe all up, including fees and interest. We don’t hide anything.
If you have any more questions our support team is available on live chat support on our website during the day so just ask, we’re happy to help.