What is Payday Loan?
There is no exact definition of a payday loan, but normally they are considered to be very short term loan with a high rate of interest. Generally you can take a loan of $500 or less to cover the monthly expenditures and you have to repay the loan on your next pay day.
Who is Eligible for Payday Loans?
It totally depends on the lender company and their terms of services. Normally a person who have a good job and getting almost 1000$ monthly salary along with a bank account and an active debit card can apply for the payday loan of almost $500. If the monthly salary is less than 1000$, let’s say it is about 600$ to 700$ then the applicant can get a loan of amount $300. There could be some more requirements depending on the company you are dealing with like they could ask for your passport or national identity card, or they want to see that your bank statement is good and some more. But normally best payday loan companies don’t ask these things they just need to know how much your monthly salary is, your bank account and the debit card. If you have all these, you are good to go.
How to apply for payday loan?
As these are fast cash payday loans, so normally all the companies have online system so that needy people can apply for payday loan online. Few companies can ask you to visit their physical address and then provide the required information and fill out the application form and agreement letter. But most of the time, you just need to fill the application and can apply for payday loan online.
How many days to receive the payment?
As these are considered fast cash loans, so the applicant doesn’t need to wait to complete a long process of verifications of documents and guarantors. Normally the applicant gets the cash amount on the same day of applying for the payday loan. Just make it sure that you have completed and submitted the application at the start of the day without any errors and the cash amount will be transferred to your bank account before the end of the working day.
How to repay the loan?
It depends on your agreement and terms of services you have signed at the time of applying to get the payday loan. Normally your bank account is attached to the agreement between the applicant and the lender and on the day you receive your pay i.e. on your payday, they debit the original amount and the total profit/interest on that amount from the bank account directly.
What happens if you don’t payback a payday loan?
The lender will try to take money from the bank account of the borrower. If there is not enough amounts in the bank account they will keep trying to debit that amount from the bank account until they get their money. Or in past, if someone else paid the loan amount for that specific borrower, the lender will also try to take money from the account of that person as well to settle the loan amount. So in this case, the best option for borrower is to meet the lender personally and settle the issue with mutual understanding.
Though it is very good idea to borrow a small amount of loan on the same day you need and then repay that amount on your next payday. But for that you have to find out the company who is providing best payday loans on easy agreement near you. You should check the profile of that company and should read the full agreement and each point in terms and condition form to avoid any unpleasant experience. Also keep in mind that what will be the reaction of the company if you fail to pay back the loan amount. You can find that in the agreement form.