Payday loans are one of the most marketed services online. These loans are also known as short term loans, and provide an instant relief from financial problems. People who face unpleasant experience with financial companies often resort to these loans. Also those who cannot extend their budget until the next check turn towards payday loans as well. These loans are much easier to get as compared to traditional loans. Payday loans companies offer 24 hours solutions for people in need.
Online Payday Advance Loans
So if you are thinking of applying for a payday loan, here is what you need to know:
Basic requirements
You need to fulfill some of their basic requirements to be eligible for the loan:
How to apply?
Most of the lenders now have the process of online application wherein the interested person can apply online. The whole process is shortened as they don’t have to visit the store. The documents required are listed clearly on the website and the entire process is really simple that allows the borrower to submit needed documents in one go. The documents then submitted are checked by the company and checked against forgery. If everything is in favor they take digital signature on the document stating different rules and regulations to the customer and loan is also transferred in his bank usually on the next working day.
One can also request for a check, if they don’t want money to be deposited in their banks.
Loaned amount:
The minimum amount in the US that a person can borrow from payday firms depends on the state. A minimum of $50 to a maximum of $1000 can be borrowed. Usually loan more than $500 is granted through checks. There are some states in the USA that prohibits payday loan practice.
Interest rate:
Well interest rate is the most important thing to consider while applying for payday loans. For example, a borrower pays $20 for every $100. Payday loan is unlike traditional bank loan and is to be returned by the next payday or maximum of 3 months. In the US a borrower pays around 400% as per the consumer federation of America. If a person fails to pay back the loan in the allotted timeframe, a massive rate of interest is implied on the amount to be returned.
It is easier to take payday loans but at the same time one must ensure that he is in a position to return it otherwise one can get stuck in the vicious circle of repayment and may have to pay even 1000% of the amount borrowed.
Reading the terms carefully while applying for payday loans and understanding them is essential. The dates of start and end of payday loan are mentioned very clearly on the documents provided by the lending company.