EZcorp is a large payday loan and pawn shop company. They just released their Q4 2009 results. A look at the numbers provides an interesting insight into the payday loan business.

Payday Loan Statistics

In the stores where they offer payday loans, EZcorp lends up to $1500. The average amount of the loans they make is $555. The terms are generally less than 30 days and average 18 days. The due date for loan repayments fall on their customer’s paydays.

The fee they reported that they earn is 20% of the loan amount. So, if they loaned out $500, the company would receive $100 in fees (or interest).  For the fourth quarter they reported an increase of $2.7 million in payday loan fees.

In many of their stores, EZcorp also offers longer term unsecured loans. These are usually terms of five months with ten equal installments also due on their customer’s paydays. The loan principle amounts range from $1525 to $3000 but average about $2070. With each payment, they report that they earn a 10% fee of the initial loan amount.

Auto Title Loans

At many of their stores, EZcorp also offers auto title loans. This is where you borrow money secured by the title of your car. They are 30 days loans. EZcorp reported loan principle amounts ranging from $100 to $9000 with the average loan at around $700. They earn a fee of 12.5% to 25% of the auto title loan amounts. This means that with a $1,000 loan they can receive up to $250 in fees.

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