Virgin Money structures formal loans between friends and family. It is a person to person lending service that manages the personal loans you make with people you know. Virgin Money helps provides a formal way to manage personal loans between friends and family.
Virgin Money provides documents so that the loans you make with friends and family will be supported with professional, formal loan documents and agreements. Those documents can also be used for legal purposes in case you have to sue.
Getting a Virgin Money Loan
To get a loan, borrowers must find a lender on their own, generally asking friends, family, investors, or other contacts to loan you money. After you secure a lender, or lenders, Virgin Money will service your loan by creating formal loan documents, acting as an intermediary.
Types of Loans Handled by Virgin Money
The types of loans handled by Virgin Money are numerous. They could be personal or business loans, car loans, real estate loans, tuition, debt consolidation, vacation or even wedding loans.
Why Use Virgin Money
With person to person lending, a borrower bypasses the banks and borrows money from individuals, or a group of individuals and can get more for their money. Often times you can get a better interest rate when borrowing from friends or family and more flexibility in repayment.
Interest Rates
The interest rate is determined by you and your lender. Virgin Money simply uses your agreed upon interest rate to structure the loan documents.
Repayment Schedule and Terms
You and your lender must determine and agree upon repayment terms and the method of payment. Virgin Money will handle the payment process and transfer money from your bank when the payment is due. You have flexibility in repayment terms; however, Virgin Money recommends the borrower pay back the loan in installments.
The installments are primarily monthly, although quarterly and annual payments may be selected. Repayment schedules can be amortized, graduated or seasonal. You can also add a deferment period at any point, and make a period interest-only you just need to let Virgin Money know and they will include it in the loan documents.
Loan Fees and Costs
Virgin Money offers a variety of services and the costs varies depending upon the service you choose. The services offered as follows:
- Create Loan Documents
- Provide Repayment Schedules
- Draft payments electronically
- Provide title and escrow services
- Advise borrowers and lenders
- Create Loan Proposals
- Handle Liens
- Credit Reporting
[Update: As of November 2010, Virgin Money US, shut down its website without explanation; however, Virgin Money UK, Australia and South Africa remain open]
