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The Central Bank granted a license to a new lender, prompting further requests for cost caps.
British lender Amigo has been authorized to charge loans at 49.9% of this amount and plans to start operations in March of next year.
This brings to 39 the number of licensed lenders currently operating in this market.
And this comes just weeks after a report by UCC academics has asked that interest rates that lenders can ask for be capped. Most European countries impose interest rate restrictions.
Licensing Amigo prompted Taoiseach Leo Varadkar to indicate in the Dáil that the government may have to consider capping lender rates.
He responded to Mary Lou McDonald, leader of Sinn Féin, who had raised "outrageous" rates that can be applied by companies approved by the Central Bank.
"This Amigo is not a friend to anyone who borrows money from them," she said.
The Taoiseach recommended credit unions to use credit unions excluded from ordinary credit companies and said that Amigo 's loan rates were very high.
Amigo plans to offer its loans here online, as the target market is for people with poor credit histories. In the UK, a typical loan is £ 4,000 (€ 4,530) over four years. Approval is granted within 24 hours.
His model means that those who obtain a loan must call on a guarantor, usually family or friends.
The loan is given to the surety.
He stated that this was meant to "cement the relationship" between the borrower and the guarantor and to guarantee the person who guarantees it that he is comfortable with the arrangements.
He charges a fixed rate of 49.9% for loans, which means that he is clbadified as a lender in this country. This means that a loan of € 5,000 to be repaid over 5 years in the amount of € 5,000.
Getting the same loan from a credit union for the same period will only cost 5,600 euros, based on an 8% interest rate.
Irish independent
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