what is payday loans? are they always ethical? why or why not? explain. what is usury?

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Payday loans are those loans when postdated cheque are issued to lenders and cash is received at the present using the salary.

It is a type of unsecured loans with high interest and those employees who are working in some company are in immediate need of the cash then, they are going to discount their future earning and they will be borrowing by writing a post dated cheque.

payday loans are not always ethical because these are leading into unnecessary trapping of the borrowers into a debt cycle and it will also mean that there will be a very high rate of interest which will be charged upon payday loans.

Usury is a practice of making unethical loans by the landers to the borrower's which are exploiting the interest of the borrowers and only benefiting the lenders because lenders are issuing these loans at a very high rate of interest which are not justified and which are mainly issued with a view to exploit the interest and the condition of the borrower by taking optimum advantage of it.

jeff jeffy answered 1 year ago

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