Mexico, a country in the south region of North America that shares one of the borders with the US and the other side is joined by the Pacific Ocean. A very important part of the economy is generally generated by industries like oil and gas, tourism
, and federal government contributions.
installment loans Mexico
In terms of urgent financial aids, Mexico offers various other options but comes under those regions who don’t allow payday loans and have some strict rules for that. Before 2017, the payday loans were legal and people used to borrow instant cash even for small non-urgent works too, consequences? Of-course, the cycle of debt got started with high charges. To consider these high-cost loans that too with a small term, some strict measures are taken by the legitimates of the country.
Now, you might be thinking that what the people will do if they need some cash on an urgent basis? Don’t worry, there’s always a backup plan, and to tackle such circumstances, the government passed an act that includes several rules. The lender who can follow those guidelines can lend money otherwise that would be considered as the violation of the bill. Let’s check out the new precepts here –
- The loan amount limit is increased to $5000, as now you can conquer your various urgent needs.
- To charge more than 175% of APR is not allowed, so rates can’t be higher than that.
- At least 120 days are given for the refunding of the loan and that too in a minimum of 4 installments.
And these edicts have started from January 2018, which has changed the perspective of consumers towards a short-term and small amount of loans. So, as per the rules, you’ll have an option of Installment loans for bad credits, in Mexico.
Alternative of payday loan – Installment loans in Mexico
Like payday loans, these loans are also meant to be designed for netizens who have bad credit scores and need money within one or two days. You can find various online loan providers to provide this loan but the amount, term, and rates also vary from lender to lender.
For instance; Ms. Rachel, one of my colleagues who shifted to New Mexico, last year and found an urgent need for quick cash so she tried to get a payday loan. But couldn’t get due to the laws, then someone told them to consider an installment loan that can even cost you less and specially introduced for bad creditors and that too without any collateral. So, she got $1000 for 9 months with an APR of 175% that includes the whole cost of the loan.
No doubt, these loans are also expensive but not more than payday loans that charge around 400%- 500% or more, and even the whole repayment has to be done on a single day, that too within a few days.
Reasons behind changing of rules related to payday loans in Mexico
The Act established for the new laws and poverty is to make the economic and social conditions better in the country via advocacy, education, and litigation. It’s basically for those people who already have low wages and they get trapped into the most expensive kind of loans as their financial history is also not good for which the lenders took advantage. So, with this new act, netizens will at least get 4 months to repay their amount that too in fixed EMIs. This law has protects the people’s rights who live below the poverty line.
The main focus of this bill was to eliminate the barriers that keep the Mexicans into trouble with the debt cycle because before the bill passed, the lending industry was making benefits from the people who already suffered from various financial issues. To improve the condition of the country, it is designed by understanding the financial thing of Mexico.
On the whole, the loans are designed to provide help to the citizens, not to looting them and that’s why the new small-loan rules are made. Though, these new loans are also expensive but not as much as payday loans. But, still, this should be your last option to take help from to prevent costly choices.