There is Growing Approval for Payday Loan

For the first six months of this year, almost 40% of all applications for a payday loan were approved. For example, over the same period last year, this figure was just over 30. During this time, payday loans were issued for more than 17.5 billion rubles, which is one-fifth more than in 2017. The average loan has also grown and is now 8 thousand rubles. At the moment, the growth trend of approval of applications remains.

The most frequent borrower in an Payday Loan is a person who has a so-called “technical” loan or loan debt of up to 30 days. In this case, the bank will most likely refuse to issue a loan, and for a microcredit company such a client will be considered “quality”. Many companies now face the question that, perhaps, sooner or later, such clients simply end and then the statistics on loans issued may deteriorate again.

A Payday loan on the security of a car

Many financial analysts associate the growth of approvals for payday loans with the fact that people are more likely to take payday loans on the security of cars. The average check for this product increased by 5 thousand rubles and is 250 thousand rubles. Already in the beginning of autumn such loans were issued for more than 1 billion rubles.

A Payday loan on the security of a car

Strangely enough, but Moscow and St. Petersburg did not become leaders in terms of the largest loan with a pledged car. More than 350 thousand rubles for one loan were issued in Saratov, Tula, Vladimir and several other cities. In the capital, the largest loan was not enough several thousand rubles to overcome the bar of 300 thousand, and in St. Petersburg as much as 40 thousand rubles.

The portrait of a borrower who makes a payday loan on the security of a car has changed somewhat. Or rather, the range of vehicles of these borrowers has changed. In the autumn of last year, premium-class cars such as Mercedes, BMW, Toyota appeared in contracts most often. In the same year, KIA, Hyundai, Ford and others often get bail.

I would like to remind borrowers who want to take a payday loan on the security of a car that you should always try to be vigilant and carefully review the contract and conditions on the loan. Recently, frauds by unscrupulous Payday Loans have become more frequent. Employees of such companies at the time of signing the contract offer to re-register the car to the new owner, while signing a contract of sale or leasing.