You need to price your loans based on costs. You have hard costs and you have interest rate spread costs. It is very difficult to make up hard costs on a 9 month $500 loan. Making the loan affordable or look like it has a lower APR is not the issue unless you are facing usury issues.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
You need to price your loans based on costs. You have hard costs and you have interest rate spread costs. It is very difficult to make up hard costs on a 9 month $500 loan. Making the loan affordable or look like it has a lower APR is not the issue unless you are facing usury issues.
Those fixed costs on small dollar loans are why so many banks use credit cards for small loans.
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Opinions are strictly my own, and have nothing to do with my employer.