Meeting Emergency Requirements With Online Payday Loan
Meeting Emergency Requirements With Online Payday Loan
Payday loans are those very short term credits extended to borrowers to cover their needs till the next pay check arrives. The terms of the loan, the interest rate and other criteria vary from country to country and in US, states have different laws governing payday loans. These loans are normally offered in small amounts and to those who have a regular income.
Owing to the short term nature of the loan, the interest rate can be very high if calculated on an annualized basis. The loans are normally given for a two week period after which the borrower is expected to return the money with interest. While taking the loan, the borrower hands over a check for the full amount plus interest as a security to the lender. If the borrower fails to return the money on the stipulated date, the lender will submit the check to the bank. In case the account is short of funds, bouncing and other charges are also levied to the borrower. Many of the lenders seek information on the income and ask for the bank statement as proof of regular income.
Online payday loans are marketed through internet and email. Here the application form is filled online and submitted with all relevant details like bank statements, personal identification and pay check information. The money is directly credited to the account of the borrower and on the due date the amount along with the charges is withdrawn from the account electronically.
Though initially it was required to send the documents by fax, this criterion has since been dispensed with. Now you can get the hassle free online payday loans sitting in the comforts of your home or office.
Online pay day loans are normally given without looking at the credit rating of the borrower. Hence it is possible to get your loan even if you have a bad credit. The companies offer various schemes like fast track loans and better terms and facilities for regular customers.