RESEARCH REVIEW: Just How Do Small-Dollar Nonbank Loans Work?
A senior affiliated scholar with the Mercatus Center at George Mason University, whose research for its Program on Financial Regulation, focuses on small-dollar loans in the first of a series of posts reviewing studies that are particularly helpful in understanding the nature and role of Traditional Installment Loans, we examine the 2019 study How do Small-Dollar Nonbank Loans Work? Conducted by Thomas W. Miller Jr.
This is certainly a study that is important the knowledge of nonbank credit generally speaking and installment loans in specific, for the reason that it gives an in depth breakdown of the landscape for small-dollar loans and examines an amount of items, including NILA-style conventional Installment Loans offered by nonbank customer boat loan companies.
The analysis is strong on history, pointing out that particularly licensed loan providers, making installment loans at set prices, were founded through the Uniform Small Loan Law of 1916, especially to provide borrowers a safe and affordable replacement for loan sharks, who before which had operated with impunity.