Pay day loans and installment that is short-term prey regarding the urgent need of individuals for small-dollar amounts and cost very high charges and interest to your borrowers. PayActiv is rolling out a genuine option to pay day loans that can help ordinary used people avoid these debt-traps of predatory financing and start to become self-reliant in managing their expenses.

In modern times, state and federal laws have been passed to manage the cash advance industry so that you can protect customers through the misleading methods of loan providers. The lenders have introduced an off-shoot of payday loans called short-term installment loans, which allow borrowers to repay the loans over six months or longer, but an average borrower still ends up paying 2 to 3 times of the borrowed amount despite that, in response to the opposition of single-payment loans.

Requirement for small-dollar loans

Estimated 40% of populace that are either unbanked or underbanked (25% of U.S. home) borrow through small-dollar loans, rent-to-own agreements, pawn shops, or reimbursement expectation loans (FDIC, 2009). In addition, millions in middle-class, that have little if any cost savings and now have maxed away their charge cards, also check out loans that are small-dollar times during the need. Read More