Money lenders are individuals or groups of people that offer small loans to people who have no access to get to banks and big financial institutions. Money lenders services are similar to big financial institutions but they largely cater for bankrupt people or individuals who have been rejected because they have bad credit history. The interest rate given by money lenders is very high as compared to banks and various other financial institutions such as credit unions and building societies.
Money lenders operate on a lower scale in communities to lend people money who want to start small businesses. Just like banks, the borrower should be in possession of the proof of residence, proof of identification and many other documents. Money lenders may not be interested in knowing if the money will be used legally or illegally as long as their money will be paid back with interest. They lend money to people such as gamblers, drug dealers and many more.
Organisational money lenders can either be run by the government or private individuals but their services are similar. The former is more authentic and give loans to people who have good history whilst the latter may also consider people with bad background including criminals .People are supposed to be cautious when they want loans from money lenders because some of them may be dangerous to the extent of killing if the borrower fails to pay back.