Rainy Day Expands "0%" and "$1 a day" Socially Driven Loans

PORTLAND, Ore., March 2, 2015 /PRNewswire/ -- Rainy Day Capital, LLC announced today the full public launch of its website, rainyday.org, offering wider access to its innovative approach to lending. Rainy Day integrates social media and networks to create an inexpensive alternative to payday loans, providing short-term access to cash with no interest or fees for five days. 

Rainy Day also announced a further reduction in the fees that apply after the five free days each user receives four times a year.  Rainy Day will now charge all new borrowers a flat fee of $1 a day, with no upfront or hidden fees, thereby providing loans at a small fraction of average industry rates. It's also possible for a borrower to get even lower rates as they demonstrate a strong repayment history. 

"We want to help as many people as possible avoid the insanely high 400% APR of the typical short-term loan," said fonder Hayden Hamilton, "and at the moment, despite the loud marketing claims, no one else does that."

Rainy Day's fee structure is also very different than other short-term lenders.  The service is designed to provide a much needed tool for managing cash flow to avoid NSF charges and late fees, and is structured to encourage early repayment.  Rather than charging a large fixed fee upfront, Rainy Day charges a flat $1 a day.  Rainy Day also provides 20 fee free days per year, five per quarter. 

A slider on the Rainy Day site illustrates the dramatic difference in fees.  In California, an eight-day loan for $250 with a major payday lender costs $44.17.  With Rainy Day, the maximum fee is $8 and it could be as low as $0 if the borrower pays it back early. 

Rainy Day uses some of the microfinance practices pioneered by Grameen Bank in Bangladesh, but utilizes social networks instead of village networks as a risk management tool.  The site requires a Facebook account to apply for a loan and relies heavily on the recommendations of current Rainy Day members. 

For more information please visit www.rainyday.org.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rainy-day-expands-0-and-1-a-day-socially-driven-loans-300043016.html

SOURCE Rainy Day Capital, LLC

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