BESIDES term loans and lines of credit, there are three other non-bank personal loans.
The first are pawnbroker loans. These are collateralised loans and charge 20 per cent compound interest. They give loans from 60 to 80 per cent of the value of the collateral pledged and usually require gold jewellery or Rolex watches as collateral.
The second type are moneylender loans.
Borrowing limits are $3,000 for incomes under $20,000 per year; two times monthly income for persons earning $20,000 to $30,000 per year; and four times monthly income for persons earning from $30,000 to $120,000 per year.
