Short-Term, Small-Dollar Lending: Policy Problems and Implications

Short-term, small-dollar loans are consumer loans with reasonably low initial major amounts (frequently not as much as $1,000) with fairly repayment that is short (generally speaking for a small amount of months or months). Short-term, small-dollar loan items are frequently employed to pay for cash-flow shortages which will happen as a result of unforeseen costs or durations of insufficient earnings. Small-dollar loans is available in different kinds and also by numerous kinds of loan providers….