Pay day lending is a process which is rapidly growing all over the world. It includes two parties, the borrower and the lender. The borrower is the person who borrows the money for his immediate use, and the lender is one who gives him the money after negotiating that the borrower will give back with [...]
Pay day lending is a process which is rapidly growing all over the world. It includes two parties, the borrower and the lender. The borrower is the person who borrows the money for his immediate use, and the lender is one who gives him the money after negotiating that the borrower will give back with the principal amount plus some interest according to the decided percentage. This process is usually undertaken by financial institutions like banks and mutual organisations. This is a process is very common in many countries.
There are some disadvantages with this process, as sometime the lender’s take advantage of borrower’s inability to pay back the money on time, as the time extends from the maturity date so the lenders start charging an extra amount on the given loan after the due date, which sometimes bothers the borrowers.
The second thing which usually happens is that the lenders do not tell the whole terms and conditions to the borrowers at time of lending the money. If the person would not able to pay back the loan then the bank or the lending companies will take the houses and cars of the borrower against those loans. The risk is always involved in case of payday lending.
No related posts.
