Interest on all new short-term loans taken out before the end of the month will be waived, one online pawnbroker has announced.
According to Borro.com, the average loan term through the firm is three months, meaning the offer equates to the amount of interest being paid – which ranges from three to six per cent per month – being reduced by one-third.
The move is part of the company’s attempt to bring pawnbroking into the 21st century, as it believes it can develop the service into a mainstream option for customers looking for a short-term loan.
“This year, with the credit crisis and banks continuing to trim consumers’ credit card limits, there will be fewer options than at any time in the last 30 years,” founder of the business Paul Aitken remarked.
Customers who need a short-term loan in order to pay bills or as part of a debt management plan may wish to consider the offer, as recent research by uSwitch.com has revealed interest rates on unsecured loans are on the increase, despite the Bank of England’s base rate cuts.
By Tom Musk