04
Apr

Real World PDL vs Bank APR Comparison

There is continued controversy regarding the Annual Percentage Rate [APR] of a payday loan – single payment product – versus bank overdraft fees.

Those who compete against payday loan, car title loan and installment lenders – banks, credit unions, pawn shops… always refer to payday loan APR’s as “outrageous!” And yet, a cursory review of this “APR Bank vs Payday Loan Comparison Chart” below, clearly refutes the validity of this claim.

The following chart is based upon an independent study performed by Dr. Dan Oglevee and Dr. Bill Reeves, finance professors at The Ohio State University. It compares the actual and annualized interest rates for a variety of short-term loans and banking and credit services.

Real World APR Comparison Chart Payday Loans vs Bank Overdraft

Real World APR Comparison Chart Payday Loans vs Bank Overdraft

Need help with starting your payday loan company? Start here: “How to Start a Payday Loan-Installment Loan Company.”

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