Banks Ready Enter Payday Loans Business

With the urge of availing short term loans enhancing among individuals, many banks are ready to add payday loans in their business profile.

Online PR News – 09-March-2010 – – According to the recent reports collected after a recent survey, some well known banking brands are looking to initiate for payday lending.

Till now, the business for payday loans was limited with the low profile lenders which offered loans to a regular earner till his next payday. But, seeing the business opportunities boosting in this section banks are also ready to foray in this section, making a regular customer asking for this short term loan from a teller also.

According to Natalie Guzman of Fifth Third Bank, this credit facility is determined to help out those individuals who falls in financial hardship at the time of emergency.

Currently, Fifth Third is also providing 'early access' service to it's account holders with the motive of taking the customers out of financially down situation.

Guzman added that this service is determined to work as an insurance for those who witness a downfall in their finances with an immediate action.

The new service commenced by the banks will provide a payday loan like service on a cheaper deal but according to the experts, a danger of falling in excess debt situation will also prevail. Fifth Third has also stated that this can be termed as an expensive credit form.

However, some experts have quoted that this might be an expensive affair but is very useful for those who are not ready to wait till their next payday.

The top level economists are still suggesting the method of saving more for the emergencies or going for the credit card payments.

Besides Fifth Third, Wells Fargo and US Bank are also mulling the opportunities to play in payday section.