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Today, personal loans have become very popular in the United States. About 350,000 personal loans are issued every day in the USA. At the same time, the maximum interest rates in the US can reach up to 3% per day. Kyle Drummond, Financial expert from states that the average personal loan in the United States is $ 9,732, ten times the average microfinance loan in developing countries.

In most US states, individuals over the age of 21 can apply for personal loans. Such loans are most actively taken before holidays and vacations. The decline is usually observed in summer.

Small business loans allow business owners to manage their operations more efficiently without interrupting production processes.

Americans take out personal loans to make money. Small business loans allow business owners to manage their operations more efficiently without interrupting production processes. Therefore, 67% of borrowers demonstrate a significant increase in their income as a result of timely business insurance.

Lending in the USA

Most of the loans are taken by people from 26 to 40 years old. Their percentage is 50% of all borrowers who take out personal loans. Some borrowers are from 21 to 25 years old. Such consumers are 23%, then people who are from 41 to 60 years old, such borrowers are 21%. The smallest percentage, only 6% of people over 60 years old.

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It is also interesting that most often unmarried people take out personal loans, as many as 59% of them. Some of them are married - 36%, and those who are divorced, only 5%. On average, people can take from 7 to 10 personal loans a year. They can arrange such a loan for not very large purchases, for example, to purchase equipment or renovate a house.

State Views on Personal Loans

Taking a personal loan, you need to pay attention to many important things. One of the most often overlooked factors is the regulation of personal loans, which will differ depending on the state in which a person lives. It is very important that even if the website or advertisement says that you can borrow up to a certain amount of money. Nonetheless, your state may have restrictions on this.

Discrimination Laws

The Equal Credit Opportunity Act is a federal law that prohibits discrimination in any aspect of lending, such as race, gender, or religion. While federal law is mentioned, various state laws across the country go beyond that. If the applicant is acting in good faith, it is illegal to discriminate beyond creditworthiness.

Interest Rates

When it comes to personal loans, some states are stricter than others. For example, Ohio recently passed a very strict usury law, which states that the maximum legal interest rate on loans is less than $ 100,000, or just 8%. However, they have a few exceptions, such as if the loan amount exceeds $ 100,000 or if it is a demand bill and unsecured. In Rhode Island, the maximum legal interest rate on loans is 21%, which is 9% higher than the base rate. Plus, South Carolina doesn't even have a limit.

Usury laws vary greatly from state to state. So make sure you understand the rights before signing any legal documents. The last thing you need to do is pay extra interest, even if it's illegal.

What Borrowers Should Know?

If you are going to take out personal loans, you should do online research to find out exactly what your government allows. And more importantly, learn what type of protection you have as a consumer. Predatory lending is still a problem, therefore discretion is the best part of prowess. Spending a few minutes looking for the highs and lows in your state can save your time in financial difficulty.

Nathalie Nicole Smith states that working hard and staying true to yourself are sure ways to win in life.

People who were in dire financial straits were unable to focus on the long-term consequences. As with all loan products, reading the terms and conditions is the solution to many problems. Remember, when you sign a loan, you are responsible for paying off the debt. This does not mean that you are dependent on the lender. On the contrary, the lender needs you to make money.