Finance

       Payday loan: A Complete overview

From various research, it has been observed that different people are accepting payday loan and also payday companies are multiplying in number. If you are someone that is about to accept payday loan for the first time, or you want adequate information about payday loan, then it is necessary to understand the essential things about this type of loan.

What is payday loan?

This is a loan that is given for a short duration of time. The time duration is normally one to two weeks. Payday loan is also known as Paycheck loan, Payroll advance loans, Cash advance etc. When you acquire your paycheck, the loan should be paid back. In cases that you are unable to pay up the loan and the profit of the lender, you have the chance to rollover the loan by giving the lender additional money as profit.

Payday loan companies

Several companies who are making check cashing easy on the internet are available. Clients can apply for payday loan on the internet or you go to the company giving out payday loan physically as well. A loan comparison site such as MoneyLend can help you connect to the lenders you want with ease and saves you the hassle searching for lenders or spending time to a payday lender’s location.

What conditions should be satisfied to get an instant payday loan?

The following are the vital criterial that must be met before getting payday loan from the companies:

  • There must be a consistent source of income.
  • The clients must have a checking account in the financial institution.
  • The applicant must be a citizen of the country.
  • The applicant must be above eighteen years of age.
  • The monthly income of the applicant must be a minimum of one thousand dollars.

The perfect time to apply for payday loan:

When you make an application for payday loan from Monday to Thursday, the loan will be usually given on the next working day, this means Tuesday to Friday. If application is submitted for the loan on Friday, this will result in getting the loan on Monday, which is the next working day. Also, if you make an application for the loan on Saturday or Sunday, then the loan will be given on Tuesday. Hence, the perfect time to get the loan is between Monday to Thursday.  

Maximum limit of payday loan:

For individuals who are getting payday loan for the first time, they can get as much as few hundred dollars depending on the state you are living in. Every state has different law on how much can a payday lender lend money to borrowers.  When the payday loan is paid at the right time, sometimes it can be possible to get more than five hundred dollars next time.

How can payday loan be repaid?

The amount of money given to the borrower as a payday loan and the interest of the lender will be deducted from the checking account of the individual on the day of repayment. It is advisable to be aware about the day of repayment, so that your mind will be prepared for the repayment. In situations that you can repay on the day of repayment, you may need to ask the financial institution or lender to rollover loan money.