Payday loans are referred to as short term loans that are small and unsecured which people borrow to make ends meet within a month until their next payday. Therefore it is a principal amount that is lent out and often at a very high-interest rate. Short term payday loans are usually issued by the working class who face difficulty in making it through the month by having a mid-month cash crunch or emergency at month-end.
The repayment of the loan is completely up to the loan provider and usually in 7-60 days. However, short term payday loans are to be repaid once the next month’s salary kicks in. Thus, such short tenure, repayment risk and urgent nature of loan make the loan quite expensive. Yet people take short term payday loans focusing more on the pros that it offers in case of an emergency. In general payday loans are often taken for events like marriages, fee payments and medical emergencies.
Criteria of Payday Loans
The criteria of a payday loan are very simple and can be understood using a few examples:
Hypothetically supposing you have a bad toothache and your dentist suggests you undergo a root canal treatment that will cost you around $2000. You cannot delay it because the pain is unbearable but your bank account is on the edge as well so your payday is in 7 days and you decide to take a payday loan. As your salary is expected to be credited in 7 days the loan you apply for had a tenure of 7 days for a principal amount of $2000 at 1% interest rate. Therefore, after the period of seven days when your salary is credited, you can positively repay the loan along with the added interest and play safe.
However, in case you get late in repaying the loan amount, there are penalties that are then charged by the loan provider. Usually, people do not find it difficult to repay the short term payday loans as the salary is expected to be credited each month. The risk arises in case of a mishap such as if one loses his/her job due to uncertain reasons. It is also vital to know that certain situations such as job uncertainty, bankruptcy or no stable source of income can lead to denial of short term payday loans. However, usually, such payday loans are issued easily if the person is eligible and meets all the specific requirements.
Pros and Cons of Payday loansShort term Payday loans can be a saviour for people who live by the month and find it difficult to manage sudden expenses. Therefore people tend to be so blinded by the pros that at times they get stuck into the vicious cycle of debt.
Pros of Payday Loans
- Faster and easier: There is no hassle in taking payday loans online as these are lent faster than any other loans and are approved and disbursed within a few minutes.
- Minimum formalities: Unlike other loans, these loans do not require any extensive documentation. Usually what is required is for the borrower to have a bank account and to share minimum personal and financial details of his own.
- No Credit Check: As these loans are often taken by needy workers, no credit checks and collateral is needed. Anyone, irrespective of their financial background can avail of this loan.
Cons of Payday Loans
- Super high-interest rates: While the rate of interest per day could seem manageable when annualized, they end up to be 400% annual interest (APR) or maybe more. The APR can even go up to 9000%, for very short loans. Let’s put that in perspective credit cards have an APR of 9-30%, generally! So, now you’ll imagine how costly payday loans can be.
- Debts: If you’re unable to repay the loan within the next month itself, the spiraling over often incurs huge penalties and extra costs. This often makes it unable to meet the deadlines, trapping you into a vicious circle of debt.
Loan Services at Payday NV
Paydaynv is a website that enables you to request a loan online without going through any hassle. One can easily apply for a safe and secured loan with just a few clicks along with instant approvals. There are no fees hidden from the borrower and the full amount is transferred to the bank account without any privacy hindrance.
No user data is shared with third-party lenders. The entire process is made feasible and quick via online procedures where applications are approved faster than ever and the money is transferred to the borrower’s account instantly.
- Application Request: One can register using an online form and fill in overall details gradually in order to get instant application processing. No registration fee is charged.
- Customer help: In case of any assistance, get connected to professional experts and they’ll do their best to solve your queries. You can have quick access to payday lenders.
- Secure fund transfer: Get safe and secured fund transfer despite any credit score check. Online applications or E-sign applications are also accepted. Experience super quick results.
The bottom Line One can access incredibly fast services because the online application process takes much less time than visiting a lender location and applying for an equivalent loan. Imagine applying for a short-term loan and receiving the amount in the bank account within a couple of minutes in some cases. Moreover, as the applicant is filling in the details rigorously in the application, the probabilities of any mistake are pretty low in such cases.