Virgin Money is part of the Virgin-empire created by Sir Richard Branson whose entrepreneurial spirit has created 360 companies during his lifetime. Virgin Money offers a unique 'social loans' program where friends and family can fund personal loans.
Virgin Money is not a bank, but does offer personal financial products including credit cards. In January 2010, Branson purchased Church House Trust, a small private bank, which will eventually allow Virgin Money to offer real estate mortgages and personal checking and savings accounts.
Presently, Virgin Money provides tools and resources which allow borrowers to legally record loan documents and payments. Individuals pay a one-time fee to secure private loans with legal promissory notes and establish a payment processing account.
One of the biggest risks family member encounter when engaging in personal loans is loan default. Family and friends often put loan payments on the back burner if unexpected expenses arise or when they cannot meet loan obligations. Establishing a Virgin Money account can hold borrowers accountable and aid in preventing misunderstandings about loan terms.
Interest charged against personal loans is governed under U.S. usury laws. Individuals are prohibited from charging a higher rate of interest than banks. Therefore, borrowers can obtain lower interest rates than offered through banks or credit unions; allowing them to repay their loan faster or to have a reduced monthly payment.
Virgin Money tools let borrowers arrange person-to-person loans for practically anything that requires financing. Members have used their Virgin Money account to buy a car, start or expand a business, obtain an education, purchase real estate investments, and pay off credit cards and unsecured loans.
Individuals who want to buy a house may find Virgin Money's Family Mortgage program a good option for financing. While Virgin Money allows borrowers and lenders to create home loans that suit their needs, the terms must comply with state and federal regulations and usury laws.
Borrowers who obtain home mortgage loans using Virgin Money can access a variety of tools to ensure the transaction is legally-binding. Services include: creation of loan proposal documents, online banking transfers, lien management, and personal financial coaching. These services are in addition to the startup fee.
Real estate investors who engage in owner will carry financing may find Virgin Money a good alternative for tracking loan payments.
When borrowers utilize Virgin Money to obtain home mortgages, loan proposals are submitted to private money lenders. Once approved, Virgin Money records mortgage contracts through appropriate agencies. Payments are submitted to PRBC; a credit reporting bureau for people who obtain financing through nontraditional sources.
It is always smart to document personal loans and create legally-binding promissory notes which include the amount of borrowed funds, interest rate, payment dates, and a default clause. Many family disputes have occurred because people falsely believe the loan was a gift or default on loan payments and leave family or friends holding the bag. The only way to protect your self is to obtain proper loan documents.
We invite you to learn more about person-to-person loans by perusing our personal finance article library. We frequently publish new articles and encourage you to subscribe to our mailing list to ensure you stay abreast of current finance trends and investment opportunities.
Published on October 16, 2010 at 03:45 AM