Definition:

Call money is a type of loan that is borrowed for a relatively short period, typically one to seven days. It is often used to cover emergencies, bridge loans, or other short-term obligations.

Key Features:

• High interest rates: Call money typically has very high interest rates, often ranging between 10% to 20% or more.
• Short repayment period: Payments are due within a short timeframe, usually within the same day or the next business day.
• Minimum borrowing amount: There is usually a minimum amount that can be borrowed, which varies depending on the lender.
• High fees: Call money loans often have high fees, such as origination fees, processing fees, and late fees.
• Predatory lending: In some cases, call money lending can be predatory, targeting vulnerable populations with high interest rates and fees.

Uses:

• Emergency cash
• Bridge loans
• Covering unexpected expenses
• Buying groceries or paying bills
• Covering medical bills

Types of Call Money Loans:

• Traditional call money: Loans made by informal lenders, often on the streets or through word-of-mouth referrals.
• Formal call money: Loans made by licensed lenders, such as banks or financing companies.
• Online call money: Loans offered online through various platforms.

Regulation:

In some countries, call money lending is regulated by government agencies to protect borrowers from predatory practices. However, regulations vary, and there is still room for some unscrupulous lenders to operate.

Additional Notes:

• Call money loans are typically high-cost loans and should be used with caution.
• It is important to compare interest rates and fees before taking out a call money loan.
• Borrowers should be aware of the repayment obligations and potential consequences of defaulting on a loan.