By: Anonymous Payday Loan Insider. Installment Loan versus a Payday Loan and Think Finance’s “RISE” small dollar loan product.
If it looks like a duck, walks like a duck and swims like a duck, it’s probably a duck. And so it goes for payday loans and installment loans. With a payday loan, a borrower receives $300 in return for paying $360 to $390 on their following payday. Depending on the number of actual days outstanding, the APR is the interest payable on an amount borrowed plus other fees expressed as an annual percentage rate of charge. Payday loan APR’s typically range from 390% to 580%+. (Let’s not even start on rollovers!)
“Think Finance” has something they call a “RISE” product. It’s an installment loan. Meaning the loan is amortized: it’s payed down in equal amounts over 6 to 18 months. They offer these loans as “low as 71% APR’s. Sounds great, right? A small dollar loan to be paid back over a longer period of time. Good for the consumer… Continue reading Installment Loan Versus Payday Loan. By: Royal Paine.