Alexandoy
VIP Contributor
In our country it is common for lenders to hold the ATM card of the borrower as collateral (with a certification from the borrower to avoid legal trouble). Take for instance a minimum wage earner who needs big money to buy a motorcycle for his daily travels. He would borrow money and surrender his ATM card so that the lender can withdraw the borrower’s salary every payday which is the installment of the loan.
Usually loans like this is usurious with high interest rate of 20% for a month or 2 months or even 3 months, that’s still very high. Making it worse is that you lose your right to your ATM card. What if there is an emergency? Lenders have no compassion but they do that to have assurance of payment to the loan.
Usually loans like this is usurious with high interest rate of 20% for a month or 2 months or even 3 months, that’s still very high. Making it worse is that you lose your right to your ATM card. What if there is an emergency? Lenders have no compassion but they do that to have assurance of payment to the loan.