U.S. Bank says it will offer nearly instant small loans to its customers, becoming the first bank to provide such a product since federal regulators cleared the way earlier this year amid continuing concerns over the costs of payday loans.
The Minneapolis institution, the nation’s fifth-largest commercial bank, said its checking account holders will be able to quickly borrow $100 to $1,000, enough to cover many emergency expenses, through its Simple Loan offering. Borrowers have three months to repay, at a cost of $12 for every $100 borrowed — equivalent to an annual interest rate of about 71%. Read more
Source : Iatimes