Talk Loans was established in 2014 as a broker for guarantor loans. According to the broker’s website, it has a pool of 7 lenders that collectively offer more than 30 products. These 7 lenders are: George Banco, TrustTwo, 1plus1 Loans, TFS Loans, Amigo Loans, UK Credit, and Bamboo Loans. Loan limits are eventually defined by the lender, but Talk Loans states that applicants may seek loans between the range of £500-£15,000 through its services. Talk Loans does not charge anything to its customers, but does take commission from the lender/broker/3rd party it forwards the application to secure a loan for the customer. Also, Talk Loans adheres to the regulation standards as set by the Financial Conduct Authority.
Also Check: TFS Loans Review
Talk Loans acts as a broker for only guarantor loans.
By definition, guarantor loans require a loan applicant to have a cosigner, someone who promises to honor the applicant’s outstanding debt obligation as stated in the loan application in case the applicant becomes incapable of making timely loan repayments due to any reason.
However, according to the broker’s website, applicants and/or guarantors who have been declared bankrupt or have subscribed to an IVA probably won’t be able to secure a loan with any of the lenders in the broker’s pool, unless the applicant and/or guarantor have come out of such financial troubles and have shown a satisfactory credit management in the recent past. In fact, Talk Loans also offers customers the option to devise a debt management plan with the company by applying for a loan through it.
Talk Loans does not specify an exact timeline pertaining to the average guarantor loan application, because every lender has a different system and processing timeframes. That is why it asks applicants to allow at least 24 hours after the initial loan application for the loan to be processed, as almost all lenders in its pool do process applications within that time frame. But the company does take pride in its fast processing time. According to its website, the fastest guarantor loan ever processed through the Talk Loans platform took only 34 minutes to be funded, after the filing of the initial application.
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Since Talk Loans is a broker and not a lender, the eligibility criteria set by it is a summation of the criteria that is required by the lenders in its pool. According to Talk Loans, applicants should fulfil the following criteria in order to be eligible for a guarantor loan with one of its lenders. Applicants should:
1) Be a resident of the UK
2) Be a homeowner, and/or have a guarantor who is a homeowner
Although many lenders only require the guarantor to be a homeowner, in some cases the applicant is also required to own a home, even if its through a mortgage.
3) Be employed, either full-time or part-time
Many lenders require applicants and guarantors to have a steady source of adequate income in order to make repayments on the loan amount
4) Be over the age of 18 or 21
While lenders typically do not accept applications from applicants under the age of 18, some lenders have an even stricter age condition and require applicants to be at least 21 years of age at the time they file the application. There might also be a maximum age requirement with some lenders, usually 75 years old, and in those cases, applicants/guarantors that have crossed this age or will have crossed this age before the culmination of their loan term, may not be eligible to apply for a guarantor loan.
5) Have a high income to expenditure ratio
The income to expenditure ratio shows the income that is still left at the applicant’s disposal after deducting all necessary expenditure. This is assessed to understand the affordability of an applicant for a loan, by most lenders.
6) Have the required credit history
Many guarantor loan lenders don’t require an applicant to have a credit history provided the guarantor has a fair credit history or better. Some may also require the applicant to have a good recent credit history.
The following pros & cons pertain to the services offered by Talk Loans:
Talk Loans claims to process every application in under 24 hours, which is a good time frame to secure a guarantor loan.
Talk Loans does not charge any fee to the applicant. It earns through commission charged to the lenders/brokers/3rd parties that it shares applicant data with to secure the most suitable financing option.
The limited pool of lenders makes it easier and faster to secure a loan for an applicant. Also, applicants are not bombarded with hundreds of loan offers due to this limited number, as is the case with some other brokers that have a much larger pool.
The team working at Talk Loans comes with a diverse experience of credit markets. Hence, they are well-positioned to offer their customers credit advice and the best type of loan available for them in the market.
Talk Loans does not charge its customers anything for filling out the online application form on its website. Filling in this form shows an applicant the most suitable lenders and loan options at their disposal.
Since Talk Loans deals with a limited number of lenders, it may not connect applicants with lenders outside of its pool that are better suited to their needs.
Talk Loans has a representative APR of 49.7%. For example, on a loan amount of £4,000 with a loan term of 36 months and interest rate of 41% per year, borrowers would have to bear £3,012.08 in borrowing costs and repay a total of £7,012.08.
There are no other costs associated with the services provided by Talk Loans. However, the lenders that will receive the loan application and approve the loan may charge setup and/or other fees before disbursing the loan amount.
If a borrower chooses to subscribe to a guarantor loan through Talk Loans, the following examples illustrate the charges the borrower would have to bear with various loan amounts.
| Loan Type | Loan Amount | Loan Term | Total Repayable | Charge of Credit |
|---|---|---|---|---|
| Guarantor Loan | £500 | 36 months | £877.68 | £377.68 |
| Guarantor Loan | £7,000 | 36 months | £12,287.52 | £5,287.52 |
| Guarantor Loan | £12,000 | 36 months | £21,064.32 | £9,064.32 |
| Guarantor Loan | £12,000 | 60 months | £28,434.00 | £16,434.00 |
The following information is required to be submitted by the applicant during the entire loan process:
1) Basic information including
2) Income information including
3) Bank account details including
4) Address information including
Applying for a guarantor loan through Talk Loans is a simple process that is completely online.
Applicants need to click on the Get Started button that appears on the homepage, as shown below.
The following window appears on the next page.
Applicants are expected to click on the amount they require, which takes them to the application form, as shown below.
The information to be filled on this form is self-explanatory and the guarantor also needs to input information in the next steps of the application form. After completing it, applicants need to click on the Apply Now button to submit the application with Talk Loans for processing.
A loan expert at Talk Loans makes a phone call to the applicant and/or the guarantor and confirms the information presented in the application form. This step is necessary for two reasons: first, to ensure accuracy of the stated information, and second, to ensure the guarantor is well-aware of their responsibility to ultimately discharge the loan on behalf of the applicant in case the latter fails to do so for any reason.
Once all of the application details have been confirmed, Talk Loans will then process the application. First, it will identify the most suitable guarantor loans being offered by lenders in the market and, after finding one, transmit all of the application information to the chosen lender. Then, the lender makes all necessary assessments, including credit and affordability. If the loan application is accepted, the lender calls the applicant and/or guarantor and informs them about it. In some cases, the lender may require some additional information/documentation and this step before making a decision on the loan application.
If, for some reason, a loan application is not accepted by the lender, then Talk Loans will forward the application to another lender and this step repeats until the loan is approved.
Once approved, the lender makes a direct deposit in to the guarantor’s bank account. The guarantor is then expected to pass on the funds to the actual borrower.
In case an applicant does not make timely repayments on a loan, the responsibility of making timely repayments shifts to the guarantor. If the guarantor also fails to make timely repayments, for whatever reason, then the guarantor will have to default on the loan. This will result in fines and penalties in addition to the outstanding loan balance, and interest on the loan will continue to accrue until it is repaid. Also, the guarantor’s credit rating will also sharply decline, possibly limiting the guarantor’s chances of securing a loan for several years.
Not likely. Since guarantors have to bear the loan burden in case the main applicant fails, and being a guarantor on more than one loan can potentially make it very difficult for the guarantor to honor payments, lenders are reluctant to allow guarantors to offer guarantees on more than one loan at a time.
Once the loan amount has been deposited into the guarantor’s bank account, it is not possible for the guarantor to cancel the loan or rescind the responsibility of paying off the loan in case the actual borrower defaults.
Yes a family member, or anyone the borrower knows, can act as a guarantor on a loan, provided they fulfil the eligibility criteria as set out by the loan lender.
Yes, as long as the guarantor has a credit history that is at least fair and fulfils the eligibility criteria as set out by the lenders in the Talk Loans’ pool, an applicant can secure a guarantor loan (provided they also meet the eligibility criteria).
Talk Loans is offering broker services, helping its customers secure a guarantor loan through a list of lenders. If you are not completely convinced about subscribing to the services of Talk Loans, then you can always check out the following guarantor loan lenders/brokers. These have also been reviewed and rated by Credit Raters.
| Broker/Lender | Description |
|---|---|
| TFS Loans (Lender) | TFS Loans is offering guarantor loans in the UK, with a representative APR of 39.9% and loan amounts in the range of £1,000-£15,000. |
| 1plus1 Loans (Lender) | 1plus1 Loans is a guarantor loan provider in the UK, offering a representative APR of 47.8% and loan amounts between £500 to £10,000. |
No promo codes are available for Talk Loans at this time.
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