Outside of our country, the payday loan market has long been actively functioning and is currently considered to be a completely common practice in the field of lending. Continuing to significantly influence the economic situation, loans in different countries of the world are becoming more and more significant.
Initially payday loan were invented as a type of loan for low-income people who found it very difficult to get a loan from a bank, but funds nevertheless needed to be obtained as soon as possible. Soon, more and more people from the most diverse social sectors began to apply for such financial services – microfinance began to occupy a separate niche in the credit sector.
How much are loans in different countries of the world?
Rates for payday loan mainly depend on the degree of risk of companies. In Payday Loan, the percentage in any country is usually higher than in a bank. But not because companies are trying to cash in on people in emergency situations and cannot quickly get money borrowed from a bank, but because they risk more than banking organizations, issuing a regular loan.
So, for example, the average rate in the United States ranges from 1.6 to 1.9% per day, in Canada 1.7 – 2.2%, and in the UK 1.6 – 2.7% per day. In our country, rates range from 0.9% to 2.5%. In the US, more stable numbers, in Russia, the largest spread is obvious. But, oddly enough, in most cases we have no more stakes than in other countries, and sometimes even less. Especially, if we take into account the fact of a different price of currency.
Not a single microfinance organization will call a specific figure, this is due to the fact that a payday loan is a purely individual type of lending and the percentage is determined based on the assessment of each borrower.
Why do we need loans in different countries?
To date, payday loan in the developed countries of the world have no small demand among the population. This separate type of lending has its own terms and conditions. Make out loans to people from different backgrounds. Employees of small enterprises and large companies, as well as legal entities, as a rule, entrepreneurs and small businesses.
Just like in our country, payday loan are convenient for improving credit history, increasing financial literacy of the population and developing the economy as a whole.