My helper needs to borrow money from a money lender - how can she borrow safely?

It’s great that your helper feels she can talk open up to you about her finances - it isn’t the easiest thing to talk about! If your helper needs to take out a loan from a money lender, there are several questions you can ask her to help ensure the loan terms are fair before she signs a contract. 

Firstly, we advise exploring several options and choosing a loan company which she feels comfortable with and which offers her fair terms. We encourage her to consider lending from an ethical source. Do not borrow from unlicensed money lenders as that can leave her unprotected and vulnerable. Before signing a loan, ask her to consider the following questions:

• Is the loan for a ‘need’ or a ‘want’?

• Is the lender licensed? Unlicensed money lenders give illegal loan terms.

• Will she receive certified documents (e.g. contracts, receipts, statements) for her records?

• Does she understand the loan terms? Can she afford the monthly repayment and the late payment fees?

• Will the lender keep her passport? It is illegal for anyone to do this except for her and the authorities.

If you are concerned about your helper’s financial well-being, you can make sure she gets professional advice. Sponsor her to attend a confidential one-to-one financial counselling appointment with us to evaluate her finances and create a plan to move forward.