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Quick Loans Shatter the Economic Scenario Economy of every country is judged by its market growth and stability. And in determining this, the liquidity solvency position is analyzed. Undoubtedly, pay day loans play a significant role in facilitating the flow of liquid cash from areas of surplus to areas of deficit. It is an important tool in accumulation of cash quickly on a short-term basis. This removes he stagnancy in money market. Quick Loans are very effective in removing cash shortages. Thus it can be considered as one of the main money market equipment. But the reality differs. In real world, the unfair practices adopted by the individual moneylenders have posed serious threat to the widespread business of payday loans. After gaining the initial acceptance and popularity among a vast cluster of people, the bankers slowly gain monopoly rights. They charge huge penalty on the borrowed sum and thus provide the borrowers with headaches. The fluctuating interest rates vary from 25% to 100% and surprisingly, sometimes it exceeds the limit of 100%. It is clearly evident that for the borrowers coming under the purview of normal salary bucket, the repayment amount is out of reach. Such scenario forces them to go for another loan for paying back the current one, or sometimes in course of paying back the amount they also become bankrupted. But why do the indigenous bankers gain such monopoly power? The root cause is the huge popularity of the Quick Loans at the initial stage for the following reasons – 1. Faster and quicker technique of overcoming cash shortages 2. Helps to accumulate short term funds 3. Easy to gain the approval for applying for the pay day loans 4. Online application facility of pay day loans 5. Absence of brokerage and other hidden charges 6. Less legal formalities 7. Without slightest physical excursion, just by texting the pin number the cash gets deposited in your bank account 8. Absence of proper credit authorization which is advantageous for low income group and for borrowers having unimpressive credit records Thus we can say that in spite of having number of merits, payday loans are in the trap of the indigenous bankers who are playing with it for their own benefits. They are charging fluctuating and very high rates to the borrowers who are forced to apply for payday loans because of the crept in emergencies. Because of the unfair practices adopted by few moneylenders, not only the borrowers but the entire economy is


suffering badly. So let us to raise our protest against this unethical practice and be a wise marketer- a wise investor- and a wise borrower.


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