Personal Payday Loans and growth in consumer credit
According to FinBank statistics, the growth rate of consumer credit by Finnish households has significantly accelerated in the past year. In March, for example, the growth rate was 13.7%. At the same time, unsecured consumer loans were raised to a record level of EUR 242 million.
Loan growth is synonymous with indebtedness
In the general debate, loan growth is synonymous with indebtedness, which is considered negative. On the other hand, most of the loans are applied for home renovations, purchases and travel. So are consumption, home sales, renovations and growing investments? This could also be inferred when looking for the purpose of the Personal Payday Loans applied for in 2017.
How Do Personal Payday Loans Differ From Instant Loans?
Personal Payday Lending is a form of financing in the loan market, and Personal Payday Lending Companies are responding to the growing demand for loans. Just like other banks and credit institutions. Sometimes you hear rumors that Personal Payday Loans are just quick tips in new patterns. In many ways, the comparison is misleading because the two types of loan have very little in common: loan amounts for peer loans are higher than instant leverage, longer loan terms and significantly lower interest rates. In addition, with Fixing, for example, loan applicants are carefully screened. And in FinBank statistics all Personal Payday loans are included in unsecured consumer credit statistics.The only unifying factor is the fact that loans are unsecured, even though consumer loans are generally unsecured.
Personal payday loan companies are challenging traditional banks.
Traditional banks may have been lagging behind. Nowadays, people want to get loans quickly and efficiently with good service. Things have to go awry that not all traditional banks can always do. As a result, people are increasingly seeking consumer credit elsewhere.
Loans from finance companies are quicker and loans can be easily applied for online. While traditional banks require unsecured loans, for example, you need to go to a bank or own an online banking account. After all, today, interest rates on Personal Payday Loans can already compete with traditional banks when it comes to unsecured consumer loans.