Member Article

A Brief Overview Of Loan In US

Description of payday loan:

A payday loan is a short-term loan that can be repaid within one or two weeks. This kind of loan is also known as cash advance loan, salary loan, payroll loan etc, and repaid on and before your next payday. A payday loan you can use to cover your cash flow problem until your next payday.

Payday loans are short term loan so unlike other loans borrowers have to pay only single payment. As it is an unsecured plan there is no need to of collateral to take a payday loan.

Payday loan companies:

There are many companies like us loan credit who provides online payday loan facilities. Also, some banks and other financial institutes provide payday loan.

Who can apply for a Payday loan?

Common criteria’s of different payday companies are

• Your age must be over 18 yrs
• You have a steady source of income
• You have a checking A/c in a Bank with a valid debit card.
• You must be a US citizen.
• Your monthly income must be at least $ 1000 per month.

How do you get a payday loan?

Most of the payday loans are available in online so there is no delay in posting the documents. The application process is very simple and quick. You have to fill up the application form i.e. name, address, details about your monthly income, next payday, bank account details and the amount you want to borrow.

After submitting the form the payday loan provider contacts you and if they satisfied with your documents and loan you want they sent your loan agreement knowing you the amount they borrowed you, the repayment date and the interest you have to pay them on the payday. The whole process of the loan application to depositing money to your account takes 24 hours of time.

Interest paid for a payday loan:

For per $100 of loan amount the loan company charges 15 to 30 USD. The annual process rate(APR) of the payday loan can go up to 400%. If you are unable to pay the due amount on the repayment day the loan company may charge the finance fees and rollover the loan amount. You have to pay the loan amount plus finance charge plus interest along with for rollover period.

Payday loan offers loan amount starting from minimum $100 to maximum $1000.

BENEFITS OF PAYDAY LOANS:

Fast: The main benefit of payday loan is the loan is approved and credited to your account on the day you apply for a loan. It is very helpful at the time of cash emergency.

Easy: the application process is very easy and simple. It just takes a minute to apply for a loan.

Poor credit history: people with poor credit history may avail the payday loan.

This was posted in Bdaily's Members' News section by Anna Johnson .