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Do banks give payday loans/small loans for personal use?
#1
I was trying to look up this information on my bank's website but I couldn't find anything in-particular about it besides auto loans and house loans. I find it interesting that my bank doesn't offer a "payday loan" type deal as I'm sure they'd make a lot of money on it if they had a lot of people paying back even 1% interest. Does anyone have a bank they currently bank with that does that kind of thing? My bank is Chase bank in the US, I thought they would offer that kind of thing but I guess not.
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#2
Some big banks used to offer short-term payday-like loans before 2013: Wells Fargo, Fifth Third and Regions. The loans were called "direct deposit advances". However in late 2013 a new regulation was issued by a government agency (with a really long name which I will not bother to write lol). Based on the new rule, these banks wouldn't have met the new standards, if they had continued to offer such service, so they stopped.
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#3
I think that no bank is currently offering payday loans and the reason might be as a result of the fact that most of the banks are unable to comply with the regulations of the government as regards the issuance of payday loans to the general public as we all have seen that the presence of payday loans is causing rift in the financial sector at the moment. So, we have only the online option of getting such loans and that is what anyone getting it will use.
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#4
It would be my feeling that most banks would avoid PayDay loan type loans because just the name of them conjures up something unsavory. I think they may well offer some kind of short term loans but they would not use that terminology to describe them.
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#5
I think they don't offer loans for personal use but loaners can use some of their loaned money for personal expenses. Some banks don't really check whether you used house loans for buying or improving your house or auto loans for buying or upgrading cars.
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#6
in the united states, banks used to off small-dollar loans but the FDIC made them stop. That is why only non-banks offer payday loans today
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#7
i never heard of banks offered payday loans. Mostly banks offers different types of loans not particularly to payday loans. They offer such loans not specific to payday loans. Like what some banks offered to me. Since i have money deposited to them, they offered me a range of amount to lend. So, never been experience to a payday loan and they are not into that specific.
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#8
Some banks still do, you might need to ask for "Deposit Advance". There are some local stores that do payday loans as well. But they charge more because of the cost involved in setting up such business. They will need some numbers of staff and other things like that.

Another problem that such stores do face is when it comes to repaying. It is hard to get the money from someone that does want to pay. These have been the major challenges faced by payday loan stores.

Banks on the other ty to stay in between. Banks have the staff needed to give out the loan and there is automatic repay system that will take the money from individuals.
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#9
I don't think that's possible because even you cannot rely if the schedule date of your salary will be move or not. That's maybe the reason why banks don't offer payday loans.
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#10
I think we have that kind of offer here in my country, it's a BDO bank. I just remember my friend who works in Levi's have their privilege to have payday loans or personal loans in that bank. Not sure about its interest though maybe I should ask her.
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