With the widespread proliferation of the Internet, there are a lot of businesses which offer services similar to traditional ones but operate on an online-only model, that is, they have minimal or no physical locations and conduct all of their business via the Internet. One such example is the rise of many lenders offering quick cash loans via an online model. Most of such lenders offer a payday loan service. Such quick cash loan services operate without any physical storefronts and handle the complete process of applying, verifying and approving loans via an online website. The common criticism of such online cash loans is the high-interest rates that these lenders offer. However, there are various rates why the interest rates for such services are what they are. Let us take a closer look.
Interests just reflect the risks
As long as or ganised credit has existed, the major purpose of interest was to hedge against any risks. Even in the absence of any profit motives, the major purposcontinue reading →