Payday loans are the most famous type of loans. Payday loan benefits are what make people crazy about these. Benefits of payday loans are numerous and hard to list down.
What is a payday loan?
A payday loan is an unsecured short-term loan. It does not involve any collateral. This means, borrowers do not have to give their lender something as a security as we do in mortgage loans and others. A potential buyer have to submit a loan application along with any documents. The application will be reviewed by the lender. Upon approval, borrower gets the loan. The loan amount and the fee are payable on the next paycheck of the borrower. Borrowers give a signed check to their lender or they need to instruct their bank to transfer the funds into lender's account on their next paycheck. Online no fax payday loans are the ones where borrower do not need to send any document to the lender.
Requirements of a payday loan
The basic purpose of payday loans is to help poor. And this is the reason that the requirements of a payday loan are very simple so that every one can get a loan when needed. The requirements, however, include:
- The borrower must be 18 or above to be eligible for a payday loan
- Borrower must have a running bank account with good history
- Borrower must be employed or self-employed, and must have a proper source of income
- The identity of the borrower must also be verified via any government issues card
Theses are the basic and most common requirements for a payday loan. However, these requirements vary a lot. For instance, in some countries the minimum age of the borrower must be 21 or above. So these requirements depend on the lender, country, state laws, and general regulations.
About payday loan
Here is some important information about payday loans that you might be interested in:
- The maximum and minimum amount that you can get via a payday loan varies from country to country and lender to lender. Generally speaking, the low limit is $50 and the upper limit is $1000. However, some lenders will also give you $1500 or more as a payday loan.
- All payday loans are due on the next paycheck of the borrower. This means, the maximum duration of a payday loan does not exceed 30 days. And the minimum duration has no limit. Again, it all depends on your lender. Some lenders will extend the due date over 30 days. While others will not give you any leverage.
- The interest rate of a payday loan ranges from 15% to 30%. Which is very high. And this ultimately make payday loans very expensive.
How to apply for a payday loan?
You can apply for a payday loan in several different ways. You can apply online. You can apply over the phone. You can also apply for a loan by visiting the office of your lender. The easiest and most convenient method is to apply online. You have to fill out the application form. If you lender asks to fax any documents, send them in. However, most of the lenders do not need any documents. Once you will submit your application, your application will be sent for verification and review. You will be notified as soon as your application will be reviewed. You will get the funds in your bank account upon approval of your application.
How to repay payday loan?
The repayment process is very easy. You do not have to do anything. When your application gets approved, you have to give a signed check to your lender. Or else, you need to instruct your bank to send money into your lenders account on next paycheck. Or, you can authorize the lender to withdraw an agreed amount from your bank account on an agreed date.