Payday loans are loans that are granted for a very short period of time to ensure that they will be repaid as soon as another salary or income from their earnings is received. Such loans have a particularly high interest rate and are called by different names, such as payday loans, payroll loans, salary loans, small dollar loans, or cash advance loans. A payday loan can be offered to anyone regardless of their reliability. When granting this type of loan, the bank does not see the borrower’s creditworthiness as it is granted only for 15-20 days and is not long-term. However, the borrower should keep in mind that taking out a payday loan will increase its credibility in the market. Nevertheless, he should have a steady income, a regular bank account and at least 6 months work experience to qualify for this loan.
Online loans are becoming more and more popular these days. The best thing about an online loan is the simple application process. The application is completed in less than 5 minutes and the portal is usually open around the clock. The borrower can simply apply for the loan online and the funds are transferred by direct deposit to the borrower’s account. In this case, repayment of the loan is directly withdrawn from the debtor’s account electronically when he receives another payment or after his check has expired. The list of direct salary lenders is as follows:
- Cash Check: They apply for approval within 5 minutes of applying for loans online or at their offices in the US.
- CashAdvance.com: They give you an online loan on payday, when the customer is verified by checking a valid account, not any prepayment or savings account.
- Cash Central: It is one of the oldest salary lenders in the country with a 24 * 7 web application portal.
- MypaydayLoan: It also gives the client a confirmation response within 4 minutes of completing the application form. It is one of the largest of its kind in the country.
- Blue trust loans: He finances loans ranging from $ 300 to $ 1,250 in almost every state. These loans are non-repayable for approximately 6 months.
- MoneyLion: They offer loans to almost every state in the country with different interest rates and terms in each state. It has loan programs available to consumers at all ends of the credit spectrum.
- Net Credit: This provides a straightforward approval solution with no borrowing limits for the first timer. Applicants are eligible for $ 1,000 to $ 10,000 loans.
- Maxlend: They have a wide variety of loans and conditions, and creditworthiness is not a criterion to consider. He offers personal loans of up to $ 1,300.
Some jurisdictions limit the amount of interest on loans, including payday loans. Depending on the method used, the percentage rate for each loan may vary. In the United States, for example, the United States Small Loans Law (USLL) has set the GAM at between 36% and 40%. The main benefits of this type of loan for high industry profitability are increasing household welfare because people who do not require short term loans can easily obtain long term loans and provide a service that is not available in the market as required. loans are usually obtained by people who have exhausted all other opportunities to obtain short-term credit. Some people also criticize this type of loan for taking extremely high interest rates on money from low-income group communities. In addition, in some countries lender collection practices are very aggressive, as opposed to countries such as the US where statutory collection practices are standard.