Re:Online installment loans have taken the subprime market b...
by imtringued on Tuesday October 29, 2019 @06:42PM
(#21392887)
>The issue is that the people who take them out are likely to default a lot so the rate has to be high.
When you see a 100% interest rate loan (assuming no fees) then it basically means that banks lose 50% of the money they loan out and 50% of borrowers are paying their loan on time and have to cover the other 50% by paying twice as much.
When you see a 100% interest rate loan (assuming no fees) then it basically means that banks lose 50% of the money they loan out and 50% of borrowers are paying their loan on time and have to cover the other 50% by paying twice as much.