The big idea: Southern Bancorp, a residential district development standard bank located in Arkadelphia, Ark., acts troubled rural markets that see growing interest in little, unsecured lines of credit. Those areas attract payday loan providers, whoever same-day loans carry triple-digit rates of interest and will trap susceptible borrowers in a period of financial obligation. Southern is testing consumer that is affordable items and how to teach low- and moderate-income people about handling debt and protecting their funds.
The situation: As banks consolidate and abandon rural areas, numerous Д±ndividuals are kept without any access to mainstream financial loans such as for instance bank records and low-cost loans, helping to make them at risk of predatory financing techniques. (more…)