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What is the interest rate on payday loans in your country?
#1
I think it would be interesting to compare interest rates on payday loans in different countries. This way we can see which country provides the best terms when it comes to loaning. 

I live in Bulgaria (Eastern Europe) and during the last 5 years the competition among payday lenders is tremendous. Every lender is trying to win more borrowers on their side. That's why the latest trend in payday lending is to offer 0% interest rate on the first loan. I have personally taken such loan and indeed I payed off the amount I had taken, nothing more.

If you want to take a second loan, then there's an interest rate. The government capped this interest rate at 20% per month. However the competition is so big, that you can easily find payday lenders who offer loans with 3% (!!!) interest rate.

That's in Bulgaria. What is the interest rate of payday loans in your country? Has your government capped it?
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#2
In my country the interest rate per day is 1%, making it a total of 31/30/28% if counted throughout the months, though so many civil servants have complained about the high rate on payday, calling it an unfair policy and not so just. I agree with them on this because the loan don't seems to help out but instead reduce their income at a high rate. In some private companies the rate per day is up to 5%, thereby scaring individuals who are in tough situations but can't due to high charges and interest rate per day
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#3
In Indian, interest rates are usually between 10-12 ℅ of the principal. It's safest to avail loan form government registered banks though some lending companies are also present. The amount to be repaid is calculated once and it's not recurring, though there may be fine on failing to pay on due date. I think it's a fair rate as inflation accounts for around 2℅ and it's a one time interest. It's easier to get a loan from a non banking lender but the interest is higher at around 15 ℅ and even to 20%.
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#4
(01-10-2018, 05:17 PM)Adesuwa08 Wrote: In my country the interest rate per day is 1%, making it a total of 31/30/28% if counted throughout the months, though so many civil servants have complained about the high rate on payday, calling it an unfair policy and not so just. I agree with them on this because the loan don't seems to help out but instead reduce their income at a high rate. In some private companies the rate per day is up to 5%, thereby scaring individuals who are in tough situations but can't due to high charges and interest rate per day

What country are you from?

1% interest rate per day would mean 365% annual percentage rate. This is similar to the payday interest rates in America, although they can reach as high as 800% APR if the lender is greedy and ruthless. 

I wonder what determines the difference between interest rates in different countries. I mean it's so weird that in some countries like Bulgaria for example, you can get a payday loan with as low as  3%  monthly interest if  you look hard enough, and in other countries you'd have to pay 30-50% interest rate for the same period of time. That's 10+ times more.
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#5
I'm pretty sure it depends on the institution no? Some may have higher interest rates than others. I don't think it's a government-run thing, is it? Though I know there are government caps on it, or there should be, depending on where you live, I suppose. However payday loans with 3% interest rate is pretty decent IMO considering you're not going to be getting a loan of like 10,000 dollars or anything as well.
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#6
(01-14-2018, 04:15 PM)Setari Wrote: I'm pretty sure it depends on the institution no? Some may have higher interest rates than others. I don't think it's a government-run thing, is it? Though I know there are government caps on it, or there should be, depending on where you live, I suppose. However payday loans with 3% interest rate is pretty decent IMO considering you're not going to be getting a loan of like 10,000 dollars or anything as well.

It does depend on the particular lender, that's for sure, but still there are certain tendencies in different countries. Obviously you can't find a payday loan with a 3% interest rate per month in America, the lowest you can find there is 30% a month. The highest you can find in Bulgaria is 20% (it is capped by the government).

I think the lower the cap is set, the more the government cares about its citizens by not allowing them to fall in a vicious cycle of never-ending debt. After all, whose rights should a government protect more - the citizens' or the lenders'?

Where are you from and what is the interest rate on payday loans in your country?
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#7
I am from Bucharest the capital of Romania and here the payday lenders offer loans with 6% interest rate. It is a bit higher I know but there are times when we have no choice and make a loan even if the interest is that high and we risk to go deep into debt.
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#8
I'm in Oceania and the rates are around 1.5% per day if you pay back within 30 days as agreed. After that the rate can skyrocket, leading to loans of ~$2000 in just a couple of months. It was a big thing in the news recently.
Interest rates are capped at something like 75 days though, that one is government enforced.
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#9
I stay in Nigeria where the people ain't protected that much when it comes to payday loans from the government. I mean when one pay as high as 1-2% interest on payday loans which means that you pay as high as 300% interest on an annual loan means that it is not a good option for anyone looking to borrow in order to payback in the long run. The thing that I wish to see soon is the competition reducing the cost of these loans.
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#10
The interest rate here in my country is 20% of the borrowed money annually. The interest will keep on increasing depending on how long will you pay for it. It can be 12 months, 18 months or 24 months.
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