Airdrie Savings Bank, one of the UK’s smallest banks, has announced the launch of ‘express loans’, short term loans for existing customers.
The express loans offer £50 – £500 over a repayment period of six months.
Airdrie Savings Bank will only lend to existing customers who have had an account with the bank for a year.
The announcement has put pressure on payday loan giants, whose APRs rise up to 4000%, in comparison to the 27% Airdrie Savings Bank are offering.
For example, someone borrowing £100 over 28 days would pay an extra £1.15 interest. There are no arrangement or early repayment fees.
The move came in the midst of media interest surrounding payday loans lending policies.