Process of Getting Payday Loan
Payday loan is a short term loan given to borrowers for 2 weeks. At payday it is obligatory to repay. Normally, people lend 100$ to 500$ for two weeks. Payday loan is also called cash advance. It is similar to credit card loan because of same principle, that is, spend now pay later.
There is a complete lending process for payday loan. People get the loans from lending stores or banks which offer payday loans. The loan is usually between 100$ to 500$. It is to be repaid on the next payday of the borrower. Normally, the time period of repayment is 2 weeks. Payday loan has very high interest rate.
Normally, it is 15% to 30% per 100$. Expressing in annual percentage rate, it mounts to 400% to 800%. Borrower has to give a check of the total loan to the lender. On the payday borrower personally goes to the lender and repays the loan. If borrower cannot show up than the lender is free to cash the check given to him by the borrower on the time of loan. Than the borrower becomes the debtor of bank.
Payday loans can also be lent form the internet. Online payday loan lenders have many ways to publicize their offerings. To get online payday loans people have to fill an electronic from. In that from, borrower’s account number and social security number are covered. The loan is directly goes to the borrower’s bank account