In cases of emergencies and unforeseen expenses, having to wait for payday may be impossible. During such times, a person may be forced to use other means of obtaining the needed cash. For some people, selling household goods such as furniture and electronic goods is the way to go. Others on the other hand opt to get the money they need by obtaining loans. Those people who get the money by obtaining loans are our main focus.
The payday loans are one of the most common types of loans. The loan comes in different names such as the salary loans, payroll loan or even short-term loans but all refer to one thing. The payday loan is a loan for employed people and is given on a short-term basis. The fact that the borrower is expected to pay the loan on his payday is what gives this loan its name. For employed people who need cash and are thinking of getting a payday loan, here is some crucial information you should have.
That only persons expecting employment salary qualify for this loans is the first thing you need to know. For this reason, the lenders may require documents such ad pay stub or your bank statements. The individual lenders or businesses can also use other different means to confirm your employment details other than using those documents. The main reason this confirmation is done is to check if you qualify for a payday loan and also to determine how much you can borrow so they should not give you any trouble.
Though the payday loans are referred to as unsecured loans, the lender has to have some assurance that they will get their money back once you are paid. If your loan application process is done manually by filling papers, the lenders may require for you to write them a post-dated cheque. The check is given back to you after repaying the amount you owe the lender. If you fail to pay back the money, the lender will cash the check and obtain his money back. On the other hand, doing an online application involves you authorising automated remittance to the lender once money is deposited into your account.
You also need to know about the interest rates charged on the loans. The interest rates on these loans are regulated by the government due to rise in cases of people being charged excessively high interest rates on the loans. In Australia today, the interest rates for payday loans stands at twenty-four percent per month. If a firm or individual lender charge more than twenty-four percent interest per month for payday loans, the person or company is running their business against the set regulations.