Eli5 ‘How do personal loan companies make money if you pay everything you loaned back,before the first installment date (and no early repayment fee either)?’
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The bulk of people who use such services tend to be the kind of people who, for whatever reasons, can’t manage to consistently pay loans on time. Thus, they are forced to rely on these personal loan services, as other lenders will not lend to them, and they often can’t pay off such loans early. Personal loan companies rely on this inconsistency to make money despite offering services with seemingly lax upfront terms.
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