This brief includes recommendations for banking institutions and credit unions to check out because they develop brand new small-dollar loan programs.

This brief includes recommendations for banking institutions and credit unions to check out because they develop brand new small-dollar loan programs.

The notion of banking institutions providing small-dollar loans is not totally brand brand brand new, and experience is instructive.

Until regulators mainly place a stop towards the practice in late 2013, only a few banks offered“deposit that is costly” which were due back a lump sum payment in the borrower’s next payday, at a cost most frequently of 10 % per pay duration—or approximately 260 per cent apr (APR). Continuar lendo This brief includes recommendations for banking institutions and credit unions to check out because they develop brand new small-dollar loan programs.