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  • Writer's pictureDonnelle Brooks

Fundo: Slick Looking Payday Loans

Payday loans are getting smarter, with slicker marketing disguising less than favourable loan terms. Fundo fits firmly in this bucket. Don't be fooled by the fresh modern website, this is a payday loan of the same ilk as Cash Converters and Jacaranda Finance.

What is Fundo?

Fundo is a financial institution that specializes in providing short-term loans to individuals, offering a range of $500 to $5000 with flexible repayment terms spanning from 3 months to 2 years. Catering to the diverse financial needs of its customers, Fundo aims to bridge temporary financial gaps and address urgent expenses. With a commitment to simplicity and accessibility, Fundo streamlines the loan application process, making it convenient for borrowers to secure the funds they require promptly. The institution emphasizes transparency in its terms and conditions, ensuring that borrowers are well-informed about the loan agreement. By offering a variety of loan amounts and flexible repayment periods, Fundo seeks to empower individuals to meet their immediate financial obligations while maintaining a manageable and sustainable borrowing experience.

Who Owns Fundo?

Fundo is spearheaded by its founder and CEO, Bishara Hatoum, a seasoned professional with a background that uniquely positions him in the financial sector. Prior to launching Fundo, Hatoum garnered valuable experience working in collections at Commonwealth Bank, gaining insights into the intricacies of financial services. Undeterred by the challenges, Hatoum went on to establish two other successful fintech ventures, namely Rent Instead and, showcasing his entrepreneurial acumen in the industry. With a wealth of experience and a track record of innovative financial solutions, Hatoum brings a strategic vision to Fundo, aiming to provide accessible and transparent short-term loans to individuals in need. His diverse expertise reflects a commitment to addressing the evolving financial needs of consumers through thoughtful and efficient financial solutions.

How does Fundo work?

Fundo is a payday loan service designed for optimal speed and efficiency. The application process is swift and primarily conducted online, typically resulting in a same-day assessment when all required documents are promptly submitted. The submission of bank statements is crucial for the application, playing a vital role; failure to provide them may lead to loan rejection. Additionally, a credit check is included in the evaluation process. Interestingly, loan approval remains possible even with a poor credit score, provided there are no outstanding unpaid defaults.

Borrowers enjoy the flexibility of choosing repayment terms, with options ranging from 3 months to 2 years. It's crucial to understand that while longer repayment periods offer lower monthly installments, they often result in higher overall costs. This is because, despite individual payments being more manageable, the cumulative interest payments increase over the extended duration of the loan.

Does Fundo do a credit check?

Fundo's assertion of bypassing credit checks in their payday loan matching process may initially appear attractive to individuals in immediate need of financial assistance. However, it's crucial to understand that Fundo, while positioning itself as a facilitator in the lending process, is not the final decision-maker. It operates as a broker, connecting borrowers with lenders. The key detail that potential borrowers need to grasp is that the actual lenders Fundo pairs them with will inevitably conduct credit checks as part of their evaluation process. Fundo's argument that pay slips offer more insight than traditional credit checks may have some validity, but it ultimately doesn't exempt borrowers from undergoing credit assessments when securing a payday loan through their platform. Consequently, while Fundo may streamline the application process, individuals seeking loans through them should be prepared for the standard credit checks typically associated with such financial transactions.

Does Fundo approve with bad credit?

Fundo is recognized for its inclusive approach towards applicants with imperfect credit backgrounds. Unlike traditional lenders that heavily depend on credit scores, Fundo offers financial opportunities to individuals with bad credit or less favorable credit histories.

Fundo typically evaluates applicants using a comprehensive set of criteria that goes beyond credit scores, taking into account factors such as income, employment status, and other financial details. This approach distinguishes Fundo as a more inclusive alternative to conventional lenders.

How long does Fundo take to approve?

Fundo is well-known for its rapid approval process, with many applicants receiving decisions within an impressively short timeframe. The specific duration for Fundo to approve an application may vary based on factors such as application completeness, the accuracy of provided information, and the current volume of applications under review.

In certain instances, Fundo may offer approval decisions within an hour of submitting an application. However, it's crucial to recognize that individual experiences may vary, and approval timelines are not guaranteed.

Does Fundo do Centrelink loans?

Fundo assesses the potential for providing loans to individuals who receive partial support from Centrelink benefits. This applies when Centrelink benefits make up less than 50% of your total income. It's essential to emphasize that having employment is a fundamental eligibility requirement when applying for a Fundo loan.

Do Fundo do secured loans?

Most likely, yes, Fundo will require security for your loan. They don't explicitly mention it on their website, but many payday loan companies typically ask borrowers to provide collateral for their loans. This collateral serves as a guarantee for the lender, ensuring that they can recover their funds even if the borrower defaults on the loan. Common forms of collateral might include personal assets like a vehicle, jewelry, or electronics. While offering collateral can make it easier to qualify for a loan and may result in lower interest rates, it also carries a significant risk for the borrower. If they fail to repay the loan, they could lose their collateral. It's crucial for borrowers to fully grasp the terms and consequences of providing security for a payday loan before proceeding, and to carefully consider their ability to meet the loan's terms and conditions.

Is Fundo Loans safe?

Fundo is committed to prioritizing the security and safety of its customers. In an era where online lending platforms can raise concerns about data security and privacy, Fundo employs robust security measures to safeguard sensitive customer information. They typically utilize advanced encryption protocols to protect personal and financial data provided during the application process. Furthermore, Fundo often implements multi-factor authentication to ensure that only authorized individuals can access accounts and sensitive information. Nevertheless, as with any online financial activity, it's crucial for customers to exercise caution, select strong passwords, and maintain the confidentiality of their login credentials. While Fundo takes steps to create a secure environment, customers should also familiarize themselves with the company's privacy policy and terms of use to gain a better understanding of how their data is managed and safeguarded.

Fundo fees

Fundo does not explicitly state their loan costs as a percentage. To determine the annual percentage rate (APR) of the loan, we can add up the fees for a year and express them as a percentage of the loan amount. Here's the calculation:

1. Establishment Fee (20% of the principal amount): 20% x Principal Loan Amount

2. Monthly Account Keeping Fee (4% per month): 4% x Principal Loan Amount x 12 (months in a year)

Now, we need to calculate the total monthly account keeping fees over the course of the year. To do this, we'll calculate the fees for each of the 12 months, taking into account the decreasing outstanding balance:

Month 1: $80

Month 2: $76

Month 3: $72.64

Month 4: $69.63

Month 5: $66.97

Month 6: $64.62

Month 7: $62.54

Month 8: $60.70

Month 9: $59.08

Month 10: $57.66

Month 11: $56.41

Month 12: $55.30

Now, add up these monthly fees: $80 + $76 + $72.64 + $69.63 + $66.97 + $64.62 + $62.54 + $60.70 + $59.08 + $57.66 + $56.41 + $55.30 = $762.85

The total cost for the year, including the establishment fee, is $400 (establishment fee) + $762.85 (monthly fees) = $1,162.85.

Now, we can calculate the APR using the formula:

APR = (Total Cost / Loan Amount) (365 / Number of Days in Loan Term) 100

APR = ($1,162.85 / $2,000) (365 / 365) 100

APR = (0.581425) * 100

APR ≈ 58.14%

So, the approximate APR for a $2,000 loan from Fundo over 1 year with the given fees is around 58.14%.

This is more expensive than the most expensive payday loan interest rate of 48%.

Fundo interest rate

Fundo charge an interest rate of 4% per month. This is 48% per year, the maximum rate allowed for this type of loan. To put this into perspective, a personal loan from a bank will generally have an interest rate of 10%, and a credit card will general have 20% or less, making this type of loan over twice as expensive as a credit card.

How much can I borrow with Fundo?

Fundo lets you borrow $500 to $2000 with a short term loan and up to $5000 with a medium term loan.

What happens if I miss payments with Fundo?

If you miss payments with Fundo, it's crucial to understand that Fundo is not a lender but a broker, which means the outcome largely depends on the specific lender you were matched with. Financial situations can be unpredictable, and unforeseen circumstances may cause payment failures. In such situations, it's of utmost importance to promptly get in touch with the lender or service provider referred to you by Fundo. This proactive approach can help prevent or minimize dishonour fees and assist in finding a solution that works for both parties. Fundo encourages borrowers to reach out to them even before a payment is missed to ensure effective communication and collaboration in managing financial obligations.

Can I repay my Fundo loan early?

Yes, you can repay your Fundo loan early. Like most payday lenders, Fundo typically allows borrowers to settle their loans ahead of schedule without incurring any additional charges. This flexibility can be beneficial for borrowers who want to manage their finances more efficiently and potentially reduce the overall cost of their loan by paying it off sooner. It's a feature that promotes financial responsibility and helps borrowers gain more control over their short-term financial commitments.

Is Fundo a payday loan?

Yes, Fundo is a type of payday loan. Payday loans are known for their high interest rates and short repayment terms, making them a costly form of borrowing. It's important for consumers to approach payday loans, including those offered by Fundo, with caution. The high costs associated with these loans can lead to a cycle of debt if not managed carefully, making them an expensive and potentially irresponsible choice for those in need of financial assistance. Borrowers should explore alternative options and fully understand the terms and implications of payday loans before deciding to use them.

Fundo review: The Bottom Line

Fundo has some slick marketing, but at the end of the day with short loan periods and high interest rates, Fundo is a payday loan and should e avoided.

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