Moneyshop.co.nz Review

Based on looking at the website, Moneyshop.co.nz is a New Zealand-based online lender offering personal loans ranging from $200 to $20,000. While the website touts “fast and easy NZ loans” with “competitive rates” and a quick application process, the core business model revolves around interest-based lending, which is a significant ethical concern. The site prominently features a loan calculator, various loan types (unsecured, emergency, debt consolidation, car, holiday, wedding), and claims of trustworthiness backed by Trustpilot reviews. However, the explicit mention of an “Annual interest rate 29.95%” and higher APRs for example loans fundamentally aligns it with riba (interest), which is strictly prohibited and considered detrimental in Islamic finance. This makes Moneyshop.co.nz an enterprise that operates on principles that are not permissible, as it involves the charging and paying of interest, leading to an inherently flawed and potentially oppressive financial engagement.

Here’s an overall review summary:

Overall Recommendation: Not recommended due to reliance on interest (riba).
Service Offered: Personal loans (unsecured, emergency, debt consolidation, car, holiday, wedding).
Loan Range: $200 – $20,000.
Stated Interest Rate: 29.95% Annual Interest Rate; APRs up to 56.7%.
Application Process: Online, quick (stated 2 minutes), subject to responsible lending checks.
Trust Indicators: Trustpilot link prominently displayed, claims of “good, honest NZ loans.”
Ethical Compliance (Islamic Perspective): Fails, due to the explicit and integral use of interest in all loan products.

The detailed explanation reveals that while Moneyshop.co.nz may present a user-friendly interface and seemingly convenient loan options, the foundational structure of their service is built upon interest-bearing transactions. From an ethical standpoint, particularly within Islamic finance, interest is viewed as an exploitative practice that creates economic imbalance and can lead to undue hardship. It transforms money from a medium of exchange into a commodity to be traded for profit, disassociating it from tangible economic activity and genuine risk-sharing. For those seeking financial solutions, engaging with interest-based lending, regardless of how “fast” or “easy” it may seem, is an engagement in a system that fosters inequality and financial burden, rather than equitable and sustainable growth. Therefore, even with the convenience offered, the inherent nature of interest disqualifies Moneyshop.co.nz as a recommended financial service.

Here are better alternatives for ethical financial management and products:

Savings & Investment Platforms: These platforms focus on ethical investments and savings that align with Islamic principles, avoiding interest-based transactions and focusing on real asset-backed investments. They offer ways to grow wealth responsibly without engaging in riba.
- Key Features: Shariah-compliant investment portfolios, ethical screening of assets, profit-sharing models.
- Price or Average Price: Varies based on platform fees, investment minimums, and service tiers. Often fee-based, not interest-based.
- Pros: Adheres to ethical guidelines, promotes sustainable growth, diversified portfolios.
- Cons: Returns may fluctuate, requires understanding of investment principles.
Financial Literacy & Budgeting Tools: Instead of loans, focus on managing your existing finances better. Tools like budgeting apps or financial planning software help track income and expenses, identify areas for savings, and build financial discipline.
- Key Features: Expense tracking, budget creation, goal setting, reporting.
- Price or Average Price: Many are free, some premium versions have subscription fees (e.g., $5-$15/month).
- Pros: Empowers financial control, helps avoid debt, builds healthy money habits.
- Cons: Requires consistent effort and discipline to use effectively.
Community-Based Support Networks: Explore local community groups or charitable organisations that offer interest-free assistance, micro-finance based on ethical principles, or support in times of need without resorting to conventional loans.
- Key Features: Mutual aid, zakat distribution, interest-free micro-loans based on genuine need.
- Price or Average Price: Typically free or donation-based.
- Pros: Provides support in times of crisis, builds community solidarity, avoids debt.
- Cons: Availability may be limited, eligibility criteria often apply.
Skills Development & Upskilling Courses: Invest in education or skills development to increase income potential. This is a sustainable, debt-free way to improve financial standing rather than relying on loans.
- Key Features: Diverse course offerings (tech, trades, creative), certifications, flexible learning.
- Price or Average Price: Free to several hundred dollars for specialized courses.
- Pros: Long-term financial benefit, personal growth, marketable skills.
- Cons: Requires time and commitment, immediate financial relief is not guaranteed.
Ethical Investment Books: Resources that teach how to invest ethically and manage wealth according to principles that eschew interest and speculation.
- Key Features: Principles of ethical finance, investment strategies, wealth management advice.
- Price or Average Price: $20-$40 per book.
- Pros: Builds foundational knowledge, promotes responsible financial decisions.
- Cons: Requires self-discipline to read and apply concepts.
Emergency Fund Savings Accounts: While conventional banks often offer interest, some ethical alternatives or simple savings strategies (like putting cash aside) can build a safety net for unexpected expenses without incurring debt. Focus on non-interest bearing accounts or physical cash savings.
- Key Features: Secure storage for funds, immediate access, no fees for basic accounts.
- Price or Average Price: Generally free, focus on non-interest bearing options.
- Pros: Provides financial security, prevents reliance on loans for emergencies.
- Cons: Funds don’t grow passively; requires discipline to build up.
Bartering & Exchange Networks: In some communities, direct exchange of goods or services can reduce the need for cash or loans for certain items, promoting a more cooperative and ethical economy.
- Key Features: Trade skills, goods, or services directly, reduces reliance on currency.
- Price or Average Price: Free, based on mutual agreement.
- Pros: Promotes community, avoids debt, fosters resourcefulness.
- Cons: Limited applicability, requires finding suitable exchange partners.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

Moneyshop.co.nz Review & First Look

Moneyshop.co.nz presents itself as a swift and straightforward solution for obtaining personal loans across New Zealand, ranging from smaller amounts like $200 up to a more substantial $20,000. Upon a first glance at their homepage, the emphasis is heavily placed on ease of application and rapid access to funds. The site prominently features a loan calculator, allowing prospective borrowers to estimate repayment amounts, which is a common feature for such services. The layout is clean, with clear calls to action, primarily “Apply Now.” However, a critical review reveals that while the convenience factor is pushed, the underlying mechanism is one of interest-based lending, which raises significant ethical flags for many.

The Problem with Interest-Based Lending (Riba)

The core issue with Moneyshop.co.nz, and similar platforms, lies in its reliance on interest. The website explicitly states an “Annual interest rate 29.95%” and provides examples where the Annual Percentage Rate (APR) can climb to 56.7%. From an ethical perspective, particularly within Islamic finance, interest (riba) is strictly prohibited. This prohibition stems from the belief that money should not generate money purely through its existence, but rather be used productively in tangible economic activities where real risk is shared. The charging of interest can lead to cycles of debt, exacerbate financial inequalities, and transfer wealth from the borrower to the lender without a just exchange of goods or services. It distorts the true value of money and can create undue burdens on individuals and societies.

Transparency and Disclosure of Costs

While Moneyshop.co.nz does display its interest rates and provides examples of repayment schedules, the full implications of borrowing at such high rates might not be immediately apparent to all users. The “Costs Of Borrowing” section, while present in the footer, might not be deeply scrutinised by individuals in urgent need of funds. For instance, an example loan of $3,000 over 18 months with a 29.95% interest rate and an APR of 35.9% demonstrates a significant additional cost. This means for every $100 borrowed, a substantial portion is simply the cost of borrowing the money, not the principal itself. This is fundamentally different from a transparent, risk-sharing investment or a genuine charitable loan.

The Illusion of Quick Fixes

The promise of “fast and easy” loans, with applications taking “just 2 minutes,” can create an illusion that borrowing is a simple solution to complex financial problems. This narrative, common among quick loan providers, often overlooks the long-term implications of debt, especially when coupled with high interest rates. True financial resilience comes from disciplined budgeting, saving, and investing in productive assets, rather than incurring liabilities that grow over time due to interest. For instance, rather than a “Holiday Loan” or “Wedding Loan,” a more sustainable approach would involve saving for these events. Data from the Reserve Bank of New Zealand often highlights concerns around household debt levels, particularly unsecured debt, indicating the broader societal risks associated with readily available high-interest loans.

Moneyshop.co.nz Disadvantages (Cons)

When evaluating Moneyshop.co.nz, several disadvantages come to the forefront, primarily stemming from its operational model. These cons are not just about personal preference but touch upon fundamental ethical and financial well-being principles.

High Interest Rates and APRs

The most glaring disadvantage of Moneyshop.co.nz is the high annual interest rate of 29.95% and the potentially even higher Annual Percentage Rates (APRs) quoted, up to 56.7%. This is a significant cost of borrowing, far exceeding what might be considered reasonable for a productive investment or a hardship loan.

Exorbitant Cost: For every dollar borrowed, a substantial portion goes towards interest, not the principal. For example, a $3,000 loan over 18 months could incur over $600 in interest alone, significantly increasing the total repayment.
Debt Cycle Risk: High interest rates increase the likelihood of borrowers struggling to repay, potentially leading to a perpetual cycle of debt where individuals need to borrow more to cover existing loan costs.
Reduced Disposable Income: A large chunk of a borrower’s income becomes dedicated to debt servicing, leaving less for essential living expenses or productive investments. The Citizens Advice Bureau often details the struggles New Zealanders face with debt.

Promotion of Unnecessary Debt

Moneyshop.co.nz advertises loans for purposes that are often discretionary, such as “Holiday Loans” and “Wedding Loans.” This encourages borrowing for non-essential expenses, pushing individuals further into debt for items that could otherwise be saved for.

Luxury vs. Necessity: The platform blurs the lines between essential financial needs (like emergency medical bills) and lifestyle choices, promoting a culture of instant gratification through borrowing.
Financial Stress: Taking on debt for non-critical items can add significant financial stress, especially if unexpected life events occur, impacting mental well-being and overall quality of life.
Misguided Financial Prioritisation: It can lead individuals to prioritise short-term desires over long-term financial stability and wealth building.

Lack of Focus on Financial Literacy and Empowerment

While there’s a “Simple budgeting tips” blog post, the primary focus of the website is on providing loans, not on genuinely empowering users with tools or education to manage their finances effectively without resorting to debt.

Solution-Oriented, Not Preventative: The platform offers a ‘solution’ to immediate cash needs through borrowing, rather than fostering financial habits that could prevent such needs in the first place.
Limited Educational Resources: Beyond a few blog posts, there isn’t a comprehensive suite of tools or advice to help users build emergency funds, reduce spending, or invest ethically.
Dependency on Lending: The business model thrives on people needing loans, inadvertently fostering a dependency on their services rather than promoting financial independence.

Ethical Concerns (Riba and Its Implications)

The fundamental ethical concern, as previously highlighted, is the involvement in interest (riba). This is not merely a financial transaction but carries deeper societal implications.

Economic Inequality: Riba can concentrate wealth in the hands of lenders, exacerbating the gap between the rich and the poor.
Moral Hazard: It can detach financial gains from real economic productivity and shared risk, leading to speculation and unsustainable growth models.
Spiritual Disapproval: For many, particularly within the Islamic faith, engaging with riba is seen as a direct transgression that brings spiritual and material consequences.

Moneyshop.co.nz Alternatives

Given the ethical concerns surrounding interest-based lending, exploring alternatives to Moneyshop.co.nz becomes crucial for those seeking financially sound and ethically compliant solutions. These alternatives focus on building financial resilience, managing resources prudently, and fostering community support rather than relying on debt. Nzvanlines.co.nz Review

Ethical Financial Management Strategies

Instead of seeking loans, the most robust alternative is to develop strong personal financial management skills. This involves budgeting, saving, and making informed spending decisions.

Budgeting Software/Apps: Tools like PocketSmith (New Zealand-based) or You Need A Budget (YNAB) can help individuals track their income and expenses, set financial goals, and identify areas for saving.
- PocketSmith: A popular New Zealand personal finance software that helps track spending, forecast cash flow, and manage budgets. It offers bank feeds for automatic transaction imports.
- You Need A Budget (YNAB): A highly-regarded budgeting app that encourages “giving every dollar a job” and building an emergency fund.
Emergency Savings: Building an emergency fund is paramount. This involves setting aside money specifically for unforeseen circumstances (e.g., job loss, medical emergencies) so that high-interest loans are not the first resort. Aim for 3-6 months of living expenses.
Debt Snowball/Avalanche Method: If existing debt is a concern, these methods provide structured approaches to paying it off, often without incurring new interest-based debt.

Community-Based Financial Support

For genuine hardship, community and faith-based organisations often provide support without the burden of interest.

Zakat Funds/Charitable Organisations: In Muslim communities, Zakat (obligatory charity) funds are distributed to those in need, offering direct financial assistance without any expectation of interest-based repayment. Non-religious charities also exist to help with specific needs.
Interest-Free Loan Schemes: Some community organisations or credit unions might offer small, interest-free loans for essential needs, often based on a strong social contract and trust. These are typically not for profit and focus on community welfare.
Support Networks: Friends, family, or community groups can often provide short-term financial aid or in-kind support during difficult times, fostering mutual reliance rather than dependence on commercial lenders.

Asset-Based and Halal Financing Models

For larger purchases or investments, ethical finance offers alternatives to conventional loans, focusing on asset-backed transactions and risk-sharing.

Murabaha (Cost-Plus Financing): Instead of a loan, a bank or financial institution purchases the asset (e.g., a car, property) and then sells it to the client at an agreed-upon higher price, payable in instalments. The profit margin is fixed and transparent from the outset, rather than being an accumulating interest rate.
Ijara (Leasing): A bank purchases an asset and then leases it to the client for a specified period, after which the client may purchase the asset at a predetermined price. It’s a lease-to-own model, avoiding interest.
Musharakah/Mudarabah (Partnership/Profit-Sharing): These models involve genuine partnerships where capital providers and entrepreneurs share both profits and losses. This aligns with the principle of risk-sharing and fair distribution of wealth, rather than guaranteeing returns for lenders.

How to Avoid Moneyshop.co.nz Type of Services (and the Debt Trap)

Avoiding services like Moneyshop.co.nz is less about a direct cancellation and more about a fundamental shift in financial approach. Since these are lending platforms, the “cancellation” happens by simply not engaging with them in the first place, or by meticulously paying off any existing loans and ensuring no further financial interaction. The real strategy lies in preventive measures and adopting a financially prudent lifestyle that negates the perceived need for quick, high-interest loans.

Building a Robust Emergency Fund

The primary reason people resort to quick loans is unexpected expenses. A well-funded emergency account is your first line of defense.

Set a Clear Goal: Aim to save at least three to six months’ worth of essential living expenses. For instance, if your monthly outgoings are $2,000, aim for $6,000 to $12,000.
Automate Savings: Set up an automatic transfer from your checking account to a separate savings account (ideally one that doesn’t offer easy, instant access) each payday. Even small, consistent contributions add up.
Cut Discretionary Spending: Temporarily reduce non-essential expenses like dining out, entertainment subscriptions, or new gadgets to accelerate your savings.
Boost Income: Consider taking on extra shifts, freelancing, or selling unused items to quickly build up your fund. Data from Statistics New Zealand on household savings rates can highlight the importance of proactive saving.

Adopting a Strict Budget and Tracking Expenses

Knowledge is power when it comes to money. Knowing where your money goes is the first step to controlling it.

Zero-Based Budgeting: This method involves assigning every dollar of your income a “job” (e.g., rent, food, savings, debt repayment) at the beginning of each month. This ensures no money is unaccounted for.
Expense Tracking Apps: Utilise apps like PocketSmith or even simple spreadsheets to categorise and monitor all your spending. This helps identify areas where you can reduce expenditure.
Regular Review: Review your budget and spending at least weekly to stay on track and make adjustments as needed. If you find yourself consistently overspending in one area, figure out why and adjust your habits.

Seeking Financial Counselling and Education

Sometimes, professional guidance can provide the necessary tools and mindset shift to avoid debt.

Community Financial Advice: Organisations like the Ministry of Social Development (MSD) or local community centres in New Zealand often offer free financial counselling services. These counsellors can help you create a debt repayment plan, develop a budget, and understand your financial options.
Educational Resources: Engage with free online courses, books, or workshops on personal finance. Understanding concepts like compound interest (and why it’s bad when you’re paying it), investment basics, and long-term financial planning can empower you.
Islamic Finance Education: For those seeking Shariah-compliant solutions, specifically look for resources on Islamic economics and finance that explain ethical alternatives to conventional banking and lending.

Building Positive Credit (Without Debt)

While avoiding interest-based debt, it’s still possible to build a positive financial history if needed for future ethical transactions.

Pay Bills on Time: Consistently paying utilities, rent, and other contractual obligations on time demonstrates financial responsibility.
Avoid Credit Cards: If possible, steer clear of conventional credit cards that charge interest. If absolutely necessary for a short-term, no-interest period, ensure you pay the full balance before any interest accrues. However, the best approach is to avoid them entirely.
Ethical Financing History: If you engage in ethical financing (e.g., Murabaha for property), a consistent payment history on these non-interest-based arrangements can also build a positive financial record.

Moneyshop.co.nz Pricing & Terms

The pricing structure of Moneyshop.co.nz is entirely dependent on the loan amount, repayment term, and the inherent interest rate applied. As highlighted, their standard annual interest rate is 29.95%, with the Annual Percentage Rate (APR) potentially going higher, reaching 56.7% in some examples provided on their website. Understanding these terms is crucial, especially when evaluating the true cost of borrowing.

Interest Rates and APR

The core of Moneyshop.co.nz’s pricing model is the interest rate. Briscoes.co.nz Review

Annual Interest Rate: Stated at 29.95%. This is the rate at which interest accrues on the principal amount over a year.
Annual Percentage Rate (APR): This is a more comprehensive measure of the cost of borrowing, as it includes not only the interest rate but also other fees and charges (e.g., setup fees, Payment Protection Plan, third-party charges). Moneyshop.co.nz provides examples showing APRs of 35.9% and 56.7%. The higher the APR, the more expensive the loan truly is. For instance, a $3,000 loan with an APR of 35.9% means that over an 18-month period, you would pay back significantly more than the initial $3,000, as demonstrated by the $616.38 interest on a $2,000 loan in their calculator.

Repayment Terms

Moneyshop.co.nz offers flexible repayment terms, though these still fall within a relatively short timeframe for personal loans.

Minimum Repayment Term: 6 weeks.
Maximum Repayment Term: 26 weeks for loans up to $2,000 shown in the calculator. However, their full terms state “Minimum Repayment Time 3 Months / Maximum Repayment Time 3 Years” generally, which means longer terms are available for larger loans. The longer the term, the more interest accrues, even if the weekly payments seem smaller.

Fees and Charges

Beyond the interest rate, various fees can contribute to the overall cost of the loan, as hinted by the APR calculation.

Setup Fees: These are typically charged at the beginning of the loan.
Payment Protection Plan: An optional (but often encouraged) addition that covers loan repayments in specific circumstances (e.g., illness, redundancy). This adds to the overall cost.
Third-Party Charges: These could include charges for credit checks, administrative costs, or other external services related to processing the loan.
Late Payment Fees: While not explicitly detailed on the homepage, it’s standard for lenders to impose penalties for missed or late payments, which can further compound the debt.

Responsible Lending Checks

The website states that “Loan applications are subject to responsible lending checks.” This is a regulatory requirement in New Zealand under the Credit Contracts and Consumer Finance Act (CCCFA).

Affordability Assessment: Lenders must assess whether a borrower can reasonably afford the repayments without suffering substantial hardship.
Suitability Assessment: The loan must be suitable for the borrower’s needs and objectives.
Information Disclosure: Lenders are required to provide clear and concise information about the loan terms, interest rates, and fees. While this is a legal obligation, the ethical concern remains the fundamental nature of interest-based lending itself.

Moneyshop.co.nz vs. Ethical Financial Practices

Comparing Moneyshop.co.nz to ethical financial practices highlights a fundamental divergence in philosophy and methodology. While Moneyshop operates within the conventional financial framework, maximising returns through interest, ethical finance prioritises equity, risk-sharing, and societal well-being.

Core Principles

Moneyshop.co.nz (Conventional Lending):
- Interest-Based: Relies on charging interest (riba) on loans, generating profit from the time value of money.
- Debt Creation: Primary business model is to provide debt, often for consumption or managing existing debt.
- Risk Transfer: The risk is primarily transferred to the borrower, who is obligated to repay regardless of their financial circumstances or the success of the venture for which the loan was taken.
- Monetary Focus: Money is treated as a commodity that can generate more money.
Ethical Financial Practices:
- Interest-Free (Riba-Free): Prohibits interest in all forms. Profit is generated from real economic activity, trade, or shared risk in productive ventures.
- Asset-Based/Equity-Based: Focuses on real transactions, asset ownership, or partnership models (e.g., Murabaha, Ijara, Musharakah).
- Risk Sharing: Both parties (financier and entrepreneur/buyer) share the risks and rewards of an investment or transaction. Losses are shared if the venture fails, not unilaterally borne by the borrower.
- Societal Well-being: Aims to promote equitable distribution of wealth, discourage excessive debt, and foster sustainable economic development.

Financial Products and Their Impact

Moneyshop.co.nz:
- Personal Loans: Offered for various purposes, including discretionary spending (holidays, weddings), leading to potential over-indebtedness.
- Debt Consolidation Loans: While seemingly helpful, these still involve interest and can simply shift debt rather than resolving the underlying issues of financial mismanagement.
- Car Loans: Interest-based financing for vehicles, increasing the total cost of ownership.
- Impact: Can lead to financial strain, default, and a cycle of borrowing for individuals. At a societal level, high levels of consumer debt can destabilise the economy.
Ethical Financial Practices:
- Murabaha (Cost-Plus Sale): Used for purchasing assets (cars, homes). The financier buys the asset and sells it to the client at a pre-agreed profit margin, paid in instalments. This is a trade transaction, not a loan with interest.
- Ijara (Leasing): For asset financing, similar to a lease-to-own model, where the financier leases the asset to the client, and ownership can transfer at the end of the term.
- Musharakah/Mudarabah (Partnership Finance): For business ventures or larger investments. The financier provides capital, and profits (and losses) are shared according to pre-agreed ratios. This promotes entrepreneurship and real economic growth.
- Qard Hassan (Benevolent Loan): Interest-free loans for those in need, primarily for social welfare rather than commercial profit.
- Impact: Promotes responsible consumption, encourages productive investment, fosters equity, and reduces the burden of unmanageable debt.

Transparency and Accountability

Moneyshop.co.nz: Provides numerical disclosure of interest rates and fees as required by law. However, the inherent complexity of APR calculations can still obscure the true long-term cost for some consumers.
Ethical Financial Practices: Emphasises clear, upfront agreements with full disclosure of all costs and profit margins. Transparency is paramount in all transactions to ensure fairness and avoid ambiguity. This fosters trust and ensures both parties are fully aware of their obligations and entitlements.

Moneyshop.co.nz: The Final Verdict from an Ethical Lens

When providing a final verdict on Moneyshop.co.nz from an ethical perspective, especially one rooted in principles of justice and financial well-being that align with Islamic values, the conclusion is clear: it is not recommended. The reasons are fundamental and go beyond mere operational efficiency or user experience.

Incompatibility with Ethical Finance

The primary and insurmountable hurdle is Moneyshop.co.nz’s business model, which is intrinsically built upon charging interest. As established, interest (riba) is fundamentally opposed to principles of ethical finance, which advocate for transactions based on risk-sharing, real economic activity, and social justice.

Nature of Profit: Moneyshop’s profit is derived from the time value of money, rather than from productive labour, trade, or shared enterprise. This is seen as an exploitative practice that adds no real value to society.
Wealth Concentration: Interest-based systems tend to concentrate wealth in the hands of lenders, exacerbating economic inequality. Those who have capital can grow it without engaging in real economic risk, while borrowers often struggle under the burden of accumulating interest.
Societal Impact: The ready availability of high-interest loans, even for discretionary spending like holidays or weddings, can lead to widespread personal debt, financial stress, and systemic instability. Such practices contribute to a culture of consumerism fuelled by borrowing rather than sustainable saving and investment.

Short-Term “Solutions” vs. Long-Term Well-being

Moneyshop.co.nz markets itself as a provider of “fast and easy” loans, seemingly offering quick solutions to immediate financial needs. However, this approach often provides only short-term relief at the expense of long-term financial health.

Escalation of Debt: For individuals already struggling, a high-interest loan can quickly become a heavier burden, leading to a cycle of borrowing to pay off existing debt.
Lack of Financial Resilience: Rather than fostering financial literacy, disciplined saving, and robust budgeting, these services enable a reliance on external debt, hindering the development of genuine financial resilience.
Misallocation of Resources: Funds that could be directed towards productive investments, skill development, or building an emergency fund are instead diverted to servicing interest-bearing debt.

The True Cost of Convenience

While the 2-minute application process and quick approval are touted as advantages, they mask the true cost. The convenience is paid for not just in high interest rates but also in the potential for financial distress and the ethical compromise involved.

High APRs: The Annual Percentage Rates (APRs) of up to 56.7% are indicative of a very expensive form of credit. Even with clear disclosure, the financial burden is substantial.
Ethical Trade-off: For individuals seeking to live by principles that eschew interest, engaging with such services represents a significant ethical trade-off, potentially leading to regret and further spiritual unease.

In conclusion, while Moneyshop.co.nz may fulfil a market demand for quick access to funds, its operational foundation on interest-based lending renders it an unsuitable option from an ethical finance perspective. True financial stability and well-being are found in principled approaches that avoid debt, promote productive economic activity, and foster community support, rather than engaging in transactions that carry inherent exploitative elements. Individuals in New Zealand seeking financial solutions are strongly advised to explore ethical alternatives focusing on savings, responsible budgeting, and interest-free mechanisms.

FAQ

What is Moneyshop.co.nz?

Moneyshop.co.nz is an online lending platform based in New Zealand that offers personal loans ranging from $200 to $20,000, promoting fast and easy application processes for various needs like emergency, debt consolidation, car, holiday, and wedding loans. Pumpsonline.co.nz Review

What is the primary ethical concern with Moneyshop.co.nz?

The primary ethical concern with Moneyshop.co.nz is its reliance on interest-based lending, known as riba. This practice is considered exploitative and prohibited in various ethical frameworks, particularly in Islamic finance, as it involves profiting from money itself rather than from productive economic activity or shared risk.

What are the typical interest rates charged by Moneyshop.co.nz?

Moneyshop.co.nz states an annual interest rate of 29.95%, with Annual Percentage Rates (APRs) reaching up to 56.7% depending on the loan amount, term, and additional fees.

Can I get an interest-free loan from Moneyshop.co.nz?

No, Moneyshop.co.nz does not offer interest-free loans. All their loan products explicitly involve the charging of interest as part of their business model.

Why is interest (riba) considered unethical?

Interest (riba) is considered unethical because it often leads to wealth concentration, economic inequality, and can trap borrowers in cycles of debt. It’s seen as profiting without real productive effort or shared risk, and it can create undue financial burden on individuals.

What are some ethical alternatives to Moneyshop.co.nz for financial needs?

Ethical alternatives include building an emergency fund, utilising budgeting tools like PocketSmith or You Need A Budget, seeking assistance from community-based support networks or charities, and exploring Shariah-compliant financing models such as Murabaha (cost-plus sale) or Ijara (leasing) for asset purchases.

How can I avoid needing quick loans like those offered by Moneyshop.co.nz?

To avoid needing quick loans, focus on building a robust emergency fund, adopting a strict budget, consistently tracking your expenses, and seeking financial counselling or education to improve your money management skills.

What is an emergency fund and why is it important?

An emergency fund is a sum of money set aside specifically for unexpected expenses, such as job loss, medical emergencies, or urgent repairs. It’s crucial because it provides a financial safety net, preventing the need to resort to high-interest loans during crises.

Are there any New Zealand-specific ethical finance options?

While fully fledged Islamic banks are not widespread in New Zealand, some financial advisors and community groups may offer guidance on ethical investments and interest-free solutions. Researching local community credit unions or specific charitable organisations may also reveal options.

What is Murabaha financing?

Murabaha is an ethical financing method where a financier purchases an asset (e.g., a car, property) and then sells it to the client at an agreed-upon higher price, payable in instalments. Unlike a traditional loan, it is a sales transaction with a fixed profit margin, not accumulating interest. Travelex.co.nz Review

What is Ijara financing?

Ijara is an ethical leasing arrangement where a financier purchases an asset and then leases it to the client for a specified period. At the end of the lease, ownership may transfer to the client, often through a separate purchase agreement. It is a lease-to-own model that avoids interest.

Does Moneyshop.co.nz offer any financial literacy resources?

Yes, Moneyshop.co.nz has a blog section that includes articles like “Simple budgeting tips for managing your money in 2024,” though the primary focus of their website remains facilitating loans.

What happens if I miss a payment with Moneyshop.co.nz?

While not detailed on their homepage, typically, financial lenders like Moneyshop.co.nz will charge late payment fees and other penalties for missed or delayed repayments, which can increase the overall cost of the loan and negatively impact your credit history.

Is Moneyshop.co.nz regulated in New Zealand?

Yes, as a financial services provider in New Zealand, Moneyshop.co.nz would be subject to regulations under the Credit Contracts and Consumer Finance Act (CCCFA), which mandates responsible lending practices, affordability assessments, and clear disclosure of loan terms.

Can I consolidate existing debt with Moneyshop.co.nz?

Yes, Moneyshop.co.nz explicitly states they offer “Debt Consolidation Loans” to help combine multiple debts into one loan with a fixed rate, though this still involves interest.

How long does it take to apply for a loan with Moneyshop.co.nz?

The website claims it takes “just 2 minutes to apply” for a loan through their online application process.

Are there any risks associated with quick online loans?

Yes, risks include high interest rates leading to increased total repayment amounts, the potential for falling into a debt cycle, and the ease of access encouraging borrowing for non-essential items, leading to financial strain.

What is the “Payment Protection Plan” mentioned by Moneyshop.co.nz?

The “Payment Protection Plan” is an additional service offered by Moneyshop.co.nz (and other lenders) that typically covers loan repayments in specific circumstances, such as illness, redundancy, or disability. While it might seem beneficial, it adds to the overall cost of the loan.

How can I verify the legitimacy of online lenders in New Zealand?

You can check the Financial Service Providers Register (FSPR) managed by the Financial Markets Authority (FMA) in New Zealand to ensure a lender is registered and licensed to provide financial services. You can also review customer feedback on independent platforms like Trustpilot.

What is the role of the loan calculator on Moneyshop.co.nz?

The loan calculator on Moneyshop.co.nz allows prospective borrowers to input a desired loan amount and term to get an indicative idea of their weekly repayment amounts and the total interest payable. However, these are often just estimates and the final terms are confirmed during the application process. Crosscountryrentals.co.nz Review