Saskatchewan

Sask. payday loans will cost less in February

The provincial government is reducing borrowing costs on payday loans as of next February.

Maximum cost of borrowing will decrease to 17% from 23%

The maximum cost of borrowing will be reduced to 17% from 23% and the NSF fee reduced to $25 from $50 in February.

It'll be a little cheaper for consumers to take out a payday loan in Saskatchewan when February rolls around.

The provincial government announced on Friday that the maximum cost of borrowing and the non-sufficient funds fee will be reduced Feb. 15.

Currently, the maximum cost of borrowing is 23 per cent, meaning for every $100 you borrow, you could pay $23 on top of that when paying it back. 

The maximum cost will be reduced to 17 per cent.

The NSF fee will also be lowered to $25 from $50, and may still be charged only once per loan. 

In a news release, the provincial government said the new fee structure brings Saskatchewan's policies more in line with provinces like British Columbia and Manitoba. 

Payday loans are short-term loans of up to two months or 62 days.