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That may be a significant burden for smaller loans.
But tight credit and the recession have increased the demand for smaller loans in the United States, giving microlending a higher profile and broadening its appeal.
Peer-to-peer providers are much more competitive for smaller loans and the latest best buys from the data firm Moneynet confirm this: three of the top four rates for £3,000 are P2P players.
But for smaller loans of $50,000 or less, it's worth looking into.
Especially for smaller loans, a 24% cap could make lending unprofitable, said Danielle Fagre Arlowe, a senior vice president at the American Financial Services Assn., which represents installment lenders.
Similar(55)
Indian microfinance companies have some of the world's lowest interest rates for small loans.
Desperate for small loans, Gazans seek credit wherever they can, Nofal said.
We obviously have a two-track economic morality -- one for "small loans" and one for "serious money".
On November 6th the Arkansas Supreme Court ruled that large fees for small loans violate the state constitution.
Most of Mr. Vidal's customers are looking for small loans for a few months, like Mr. Riggsbee, who needed $60.
Indeed, even those who work in the industry acknowledge that these loans are imperfect solutions to the growing demand for small loans.
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