Very often we have been faced with urgent need for cash but do not have sufficient balance in our bank accounts to meet these expenses. Bank loans are no help as these take days to materialize. Further there are inordinate delays with bank loan proceedings.
These instant payday loans require very little time to process your loan request. As long as you are above 18, have a job and a bank account, the loan amount is transferred to your account within a day of filling the online application form. The application form again is a minimal procedure barely covering contact and account details.
Normally these loans are availed for immediate small time purchases like meeting rent etc. A loan requests barely crosses $1500 and is basically dependent on your total monthly salary. Generally the loan amount must be such that it can be repaid with your next salary cheque. These loans and repayment options are almost similar to borrowing money from friends and repaying with the next paycheck but of course in this instance an interest is also levied on the loan amount
As these loans have to be settled with your next salary, the duration for these loans rarely crosses a month. If you delay clearing your dues you can also incur a penalty charge that may go as high as 25% of your borrowings. Moreover in most cases crossing your due date may also incur you a defaulting fine up to 25%.
Legal requirement makes it mandatory for lenders to inform borrowers on the annual percentage rate on the loans availed. The APR is what will give you a better idea when it comes to calculating your actual liability on such loans. The APR can range from anywhere between 390% to 780%, contrary to normal longer duration loans.
An extension period can also be availed for repayment in these instant payday loans. The extension is normally granted till your next payday but will also include default charges and a proportionate interest rise, leading you to an even graver financial ruin. Rollovers further increase your liabilities due to higher interest and penalty charges which is why many States forbid unlimited rollovers.
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