By: Gaurav Bhola, MSM, Managing Editor
Personal loans have been gaining in popularity over the years, reaching over $40 billion in loan volume in the recent past. Payday advances are short-term personal loans that are meant to meet your urgent financial needs, when you need fast cash quickly. During times of emergencies it can be difficult to get access to fast cash in a hurry. Emergency needs can come in many forms including, overdraft protection fees, medical emergencies, overdue bills, late bill payment penalties, or other short-term obligations. Most people don’t feel uncomfortable in approaching their families and friends for a loan. Payday loans are an option for many; after all other avenues to get fast cash have been exhausted.
Short-term loans have become increasingly popular among payday consumers across the nation. Payday lenders have expanded payday loans from a few locations in the mid-1990s to thousands of big and small financial centers throughout the country. Moreover, fast cash advance loans are now being offered on the internet.
Online payday loans, no fax fast cash, faxless cash advances are available on the internet with ease. Consumers find accessing online payday advances far easier than going to the payday loan center. You can get fast cash online from the comfort of your home and work. When applying for personal loans on the internet, you don’t have to wait in lines nor spend time in traffic driving to the location.
The numerous payday lending locations within the borders of Ohio are giving the state’s legislature second thoughts. There is legislation tabled on Ohio’s house floor to cap the interest rates on payday loans. The legislation proposes to cap annualized payday advance interest rates at 28 or 36 percent, which translates into approximately $1 on a two-week $100 loan.
Ohio cash advance lenders have stated that such restrictions would put them out of business in the state. They see the cap as unrealistic and unreasonable, too low to justify making the loans. The move by the legislature is seen as not benefitting thousands of payday consumers, according to the Community Financial Services Association of America (CFSA), the payday trade group that represents the majority of payday lenders in the country.
Payday supporters see the interest rate cap as having the unintended consequence of driving out jobs that are created by the payday lending industry in Ohio, as well as, forcing consumers to pay far more expensive overdraft fees from banks and credit unions. No payday lender will be willing to lend short-term money to borrowers at such low rates. Ultimately, it will be the payday consumers who will suffer with fewer and more expensive options to resolve their urgent fast cash needs.
