Ethics and money lending are the two faces of the same coin. They are always talked about together but are always considered to be going in the opposite directions. This is why we always use the words ‘big banks’, ‘best payday loans companies’ etc but we never use the term ‘ethical banks’ and ‘ethical payday loans companies’. At times when even computer hacking has been termed ‘ethical’, what is wrong in calling an ages old business ethical?

The greatest of the economists of our era including Karl Marx and Adam Smith consider money lending an unethical business that only has one purpose and that is to earn great profits for the lender at the cost of the financial security of the borrowers. However, this business has always been conducted and people use the services of money lending institutions all the time. Banks are considered to be better than payday loans but payday loans companies are considered to be the ones that loot the customers. However, there are many reasons that can be cited in favor of the payday loans companies being ethical and completely safe.

First of all, payday loans companies do not force people to take loans. They certainly have aggressive advertisement policies, but this is just the demand of the competitive times. The final choice is always of the customers.

Payday loans are never given to people who are under 18 years of age or are unemployed as they are not able to bear the high rates of interest of these loans.

The payday loans companies pay very close attention to the amount of loan being asked for and the monthly salary of the borrower. If the company believes that the loan amount is too high as compared to the salary, it will simply reject the application instead of trapping people in a loan that cannot be fully repaid.

The payday loans companies always give a loan agreement to the borrower in writing. This means that the companies will be giving all the details like the loan amount sanctioned, the interest payable, the date of repayment and other clauses in a written agreement. It is only when the customers say yes that the loan is processed.

The payday loans companies are much better than banks in terms of flexibility in repayments. You can request to pay the amount in part on the payday or even ask to roll over the repayment date.