Tennessee banks offering payday loans
April 7, 2009 | Tennessee, alternatives, industry | Comments (0)The Nashville Business Journal looks at payday loan products being offered by Fifth Thirds and US Bank.
The fee is $1 per $10 advanced. The advance is paid automatically from the customer checking account when the next direct deposit hits the account, making the loan term anywhere from 1 to 35 days. The APR varies greatly based on the loan term, ranging anywhere from 104% to 3,650% APR. To actually receive a 120% APR loan, the APR quoted on the site, the loan term would fall between 30 and 31 days.
The bank takes on little, if any risk, by offering these loans, because they have direct access to the customer checking account the moment the direct deposit comes in to the account.
