Almost half of the households across the world find it quite difficult to meet their monthly expenses and mostly rely on monthly pay checks for survival. But still, meeting certain personal, medical and emergency financial requirements often requires additional financial assistance. So, people depend upon bank loans, payday loans, and/or traditional lenders, in order to meet their financial needs.
Payday Loans – A Practical Solution
Though all these sources are usually approached for finance needs, it seems like as we step into 2014 payday loans appeal more to people as it does not involve any lengthy underwriting or approval process or multiple bureaucracy layers that are usually entailed in the case of getting loans approved from banks. So, many of them are now considering payday loans to be a more practical solution for their immediate borrowing requirements, thanks to the very short period of time that payday loans need for approval.
Popular Because They Are Viewed As Being Hassle Free
Today, acquiring such loans takes less than a day through online approval and funds get directly deposited to the bank account of the borrower. It is not wonder that simplicity and efficiency are the main reasons that have been accelerating the popularity of payday loans in the marketplace today as against the time-consuming and very complex methods followed by banks.
Taking all these into account and considering the fact that people also favor payday loans more than any other source of financial lending services lenders today are eyeing the lucrative payday loan markets. With everyone giving importance to the payday loan market, it is doubtful whether online loans would be available in banks in 2014.
Well, we would say that this is a significant development for an industry that was started with only a handful of players and quickly developed into a multi-billion dollar business with several thousands of providers today, thus shoving back the banks and other traditional lenders. These figures only indicate that short term personal loans are progressively finding their home away from the banks. There’s nothing to be surprised about these statistics, taking into account the fact that banks may not favor providing a no-credit or short term check loan. Evidently, the online payday loan market would not want to miss out the chance and is introducing millions of deals.
Further, many of the big banks are finding their way out of the short-term, small dollar payday-loan-like business following a warning from the federal regulators that they would check if these high-interest loans were violating consumer protection regulations.
In a Nutshell
With the increasing convenience and proving to be more beneficial to the borrowers, the payday loan market is growing further to greater heights, pushing down the online bank loan markets. If this trend continues, the profitable payday loan market is sure to attract more and more lenders and finally banks may totally lose their influence in the loan markets, but it’d still take quite some time for that happen!