ASSIGNMENT | Interest on Payday Loans

Do you think the interest on payday loans is too high or just right? Should Christians charge poor people interest on loans?
Additional information:
\”Now in case a countryman of yours becomes poor and his means with regard to you falter, then you are to sustain him, like a stranger or a sojourner, that he may live with you. Do not take usurious interest from him, but revere your God, that your countryman may live with you. You shall not give him your silver at interest, nor your food for gain” (Leviticus 25:35–37, NIV).
Search the internet for “Microloans” or “Microcredit” and review the interest charged on these loans.

SAMPLE SOLUTION

Interest on Payday Loans Economically, the interest on payday loans is extremely high, considering the increasing economic constraints. Payday lenders form one of the costly investments that remind people of abusive lending just as it was during biblical times. In the United States alone, over 20,000 payday loan kiosks exist to lend small and short-term loans to borrowers. Typically, these loans cost approximately $15 to $30 for every $100 loaned, which must be repaid fully during the payday (Bhutta, 2014). Calculating the interest using the standard APR technique, the loan costs over 400% interest for a two-week loan. Although payday loans may appear to offer a solution to a sudden expense, it tends to hold borrowers in debt because…