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Payday Loans in Fall River, Massachusetts: What You Should Know
Payday loans are short-term, low-dollar loans designed to quickly and easily take care of a borrower’s smaller financial needs. Unfortunately, residents of Fall River, Massachusetts are unable to take advantage of the service due to the fact that payday loans are prohibited in the state.
Interesting Facts About Fall River, MA
Fall River, Massachusetts is a city located in Bristol County, and was incorporated in 1803. It was at the center of the historic textile industry in the late 19th century and early 20th centuries, and its economy shifted during the mid-1900s to one that is now largely service-based. The city is home to several interesting historical and cultural landmarks, such as the USS Massachusetts Museum, Battleship Cove and the Fall River Historical Society.
What Are Payday Loans?
Payday loans are short-term, small-dollar loans designed to bridge a temporary cash shortfall or emergency expense. These loans are typically repaid within two to four weeks. Payday lenders themselves do not require any form of security, however borrowers are usually required to offer proof of income in order to meet lender qualifications.
Why Are Payday Loans Prohibited in Massachusetts?
Payday loans are prohibited in the state of Massachusetts by law. The Massachusetts Small Loan Act of 1936 prohibits lenders in the state from issuing loans of less than $6,000, and specifies that any loan with an interest rate of more than 12% is considered illegal. The decision to make payday loans illegal in the state is based on the belief that they can be predatory in nature and place an unfair burden on those who may be most vulnerable to their high interest rates.
Are There Alternatives to Payday Loans in Fall River, MA?
While payday loans are prohibited in Massachusetts, there are other options available for borrowers in Fall River who are in need of short-term financial assistance. These alternatives include:
- Credit Union Loans: Credit unions provide short-term loans to their members at a lower interest rate than other lenders. Credit union loans are usually small, unsecured loans and are a great alternative for borrowers in need of temporary financial assistance.
- Personal Loans: Personal loans are available from traditional banks and online lenders. These loans typically come with lower interest rates and are often secured. Personal loans are typically used for larger expenses such as home repairs or consolidating debt.
- Peer-to-Peer Lending: Peer-to-peer (P2P) lending connects borrowers with individual investors willing to lend money. These loans typically come with slightly higher interest rates than traditional bank loans, but are often a good alternative for those unable to get a loan from a traditional lender.
- Family and Friends: Borrowing money from family or friends is an option, although it is often best to be sure to put the agreement in writing in order to avoid any potential misunderstandings.
F.A.Q.
Are Payday Loans Legal in Massachusetts?
No. Payday loans are prohibited in Massachusetts under the Massachusetts Small Loan Act of 1936.
Do I Need to Provide Any Security When Applying for a Loan?
That depends on the type of loan you are applying for. Payday loans do not require any security, however other loans such as personal loans may require some form of collateral.
Are There Any Other Alternatives to Payday Loans in Massachusetts?
Yes. There are several alternatives to payday loans in Massachusetts, including credit union loans, personal loans, peer-to-peer lending and borrowing from family or friends.
The Bottom Line
Payday loans are prohibited in Massachusetts, so residents of Fall River who are in need of short-term financial assistance will need to look elsewhere. Fortunately, there are several alternatives to payday loans in the state, including credit union loans, personal loans, peer-to-peer lending, and borrowing from family or friends. It’s important to do the research and compare the interest rates and repayment terms of each option before making a decision.
If you’re looking for a loan but don’t know where to start, TheGuaranteedLoans can help. We can connect you with lenders in your area who are willing to work with you and provide you with the best possible financial services.