U.S. Bank Unveils Simple Loan To Compete with Pay Day Loans
The biggest banks in the US have yet to introduce products to compete with Pay Day loans however there is a definite need for new products in the small loan space. That is now changing as U.S. Bank introduces its new Simple Loan – designed for quick and small amounts of money to be paid back in 3 months over three installments. U.S. Bank Simple Loans offer customers $100 up to $1,000 and there is a charge of $12 for each $100 loaned to the customer.
One of the biggest issues with existing options is that they are often quite predatory due to high fees and high expenses. The Simple Loan is quite expensive compared to other low cost loan options but within the space of short term, pay day loans, the fees are extremely competitive. The key to any short term loan like this is to pay it off quickly or you will be subject to large penalties.
Features Of The Simple Loan:
- $100 to $1,000 available in $100 increments
- Available to US Bank Customers
- Payments reduced is auto withdrawn from US Bank Account
- $12 per $100 borrowed for auto withdrawal, $15 for manual payments
- Repayment made over 3 months period (total divided by 3 plus fees)
- Application can be made online or through mobile banking app
- Repayment interest rate of 70.65%
Pay day type loans are generally reserved for pressing situations where money is needed immediately and no other options exist. Lower cost options such as personal loans may be a better option in some scenarios but for short terms needs when you plan to have the capability to repay your loan within 3 months then an option like the Simple Loan may not be a bad choice.