A payday loan that doesn’t keep the lender in a persistent cycle of debt accruement? That’s exactly what Mississippi-based BankPlus offers: payday loans at interest rates of just 5 percent, reports American Banker.
With the highest number of payday lenders per capita in the country, Mississippi could use some help with payday loans, and BankPlus recognized the demand.
In order to qualify for the loan, lenders have to undergo a three-hour financial literacy course and then set up checking and savings accounts, where the loan will be deposited.
“The idea was to create a program to assist anyone caught in the payday lending cycle, but also to serve the underbanked who seek to enter the commercial banking system,” says Bill Ray, president and CEO of BankPlus.