SMS-loan companies ask nearly 260 pct annual interests
29.04.2009, 13:22 The average annual interest rate of a fast
loan taker is currently 258.5 pct, according to fast loan search engine
kiirlaen.info, E24.ee reports.
The average annual interest rate for first-time borrower is 290.7 pct and
interest for loyal customers is 228.9 pct.
From May 1 the SMS-loan companies may not ask higher interest rate than
three-fold average of consumption loan interest. Currently that is 107.7 pct.
Tõnis Hinnossaar, the co-founder of Webistre Solutions OÜ that manages
kiirlaen.info said that the new act may give an impression as is loans were
cheap.
“The media talks of robbing interest rates and loan sharking, which has found
a solution with reasonable annual percentage rate, set in this new act. So
there’s a situation where consumers have an impression as is loans were cheap
from May 1! As a result there may be a boom to borrow, because consumers think
that currently fast loans are cheap and that’s why they may take a loan airily,”
Hinnossaar said.