According to the information obtained from the Wall Street Journal, banks, financial organizations and online money stores providing unsecured personal loans returned to suggesting personal money loans with high interest rates after having curtailed the service after the credit crunch.
Banks aim to increase profits with the help of these high-interest loans due to the governmental regulations in the spheres of mortgages and credit cards services.
As it is pointed in the report, financial organizations which provide personal loans gained $35 billion in the two first quarters of 2014. It is also pointed that in the same period of 2013 banks, credit unions and other lenders earned 8.7 percent less.
The Wall Street Journal also reported that personal money loans with high interest rates are more profitable than credit cards or mortgages which are strongly regulated by the federal law. But however personal loans meet strong competition in the financial market from personal loans online and other unconventional lending practices.