Custom Search

Virginia Payday Loans: Role Model for Other Payday Loans

Posted by Starwin on 3rd January, 2010

Virginia is one of the few states in the US that is actually motivating people to take payday loans, especially those that are offered by the government. In fact, Virginia payday loans are being promoted as an economic model for the entire US.

In payday loans, you are able to borrow money from $100 to $500 with an assurance that you will pay it back in a month at a high interest rate, which can be heart-stopping high at 400 per cent. But now the state of Virginia has allowed employees of its state to take payday loans at just 24 percent rate.

The governor of Virginia, Tim Kaine, has said that he is driving government offered payday loans for a very good reason. He said, “It is keeping state employees from having to rely on these super, you know, usurious payday lenders and instead there’s a better product within state government with a 24 percent interest rate instead of a 400 percent interest.”

The state does not worry about payday loans being paid on time because the repayments are deducted from your salary or paycheck. According to the governor, Virginia payday loan is a role model that lot of governments and private players can emulate. The employee on his part will not be burdened with growing debt. It has been seen that about 3000 state employees of Virginia had taken payday loans.