In this article I will be writing about the type of popular loan in USA. It is called as PayDay loans. The name it self describes, it is the shortest loans given to the consumers with high interest rates. In the recession time, these kind of loans are emerging to fulfil the customers needs. In this article I will explain the basic concepts on pay day loans and the various types to apply for the pay day loans. After reading the article please post your comments in the comments section. You can subscribe to our future articles here.
What is Pay Day Loans?
Let’s look into first what actually is the pay day loans. Payday advance loans are given to the borrowers with the short term. Normally the interest rates for the pay day loans are very high and duration will be less for the repayment. In the United States, finance charges on payday loans are typically in the range of 15 to 30 percent of the amount for the two-week period, which translates to rates ranging from 390 percent to 780 percent when expressed as an annual percentage rate.
How to apply for payday loans?
Applying for the pay day loans are very easy compare to the normal loans. Since the interest rates are very high on the pay day loans, there are some restrictions before giving the loans.
- The borrower writes a postdated check to the lender in the full amount of the loan plus fees. On the maturity date, the borrower is expected to return to the store to repay the loan in person. If the borrower doesn’t repay the loan in person, the lender may process the check traditionally or through electronic withdrawal from the borrower’s checking account.
- Also borrower asked to bring the any proof of his latest salary slips for the stable income proof. The borrower is also required to provide recent bank statements.
Payday loans on internet
In the recent days you can apply for the pay day loans in the internet itself. You need not go directly and apply the loans mannualy. Online payday loans are marketed through e-mail, online search, paid ads, and referrals. Typically, a consumer fills out an online application form or faxes a completed application that requests personal information, bank account numbers, Social Security number and employer information.
In this article I have written about the payday loans and how to apply for the pay day loans. In the recent times, applying for the pay day loans become very easy and you can go for the faxless payday loans. Thank you for reading the article!! If you have any doubts please post it in the comments section.