FAQs about Payday Loans

Introduction

The concept of payday loans has become more popular in recent years as a convenient way to fund unforeseen purchases or emergencies.

Understanding more about payday loans can help you make an informed decision about using this solution for your short-term financial requirements.

1) What is a payday loan?

Payday loans are short-term loans that can get you through to the next payday.

These loans are not offered by banks but are available through payday loan companies.

2) Is a payday loan right for me?

A payday loan is an appropriate source of funds in case of 1) an unexpected or emergency expense, 2) you require sufficient funds of the payday loan only until your next payday and 3) you intend to repay the loan by the due date.

Payday loans are not suitable if you expect 1) to use the loan as a long-term solution to your financial obligations, 2) you require it to pay other debt and/or 3) if you cannot repay the loan by the due date.

3) Do I qualify for a payday loan?

The criteria to qualify for a payday loan may differ depending on your province of residence and the lender but some of the typical requirements include:

• Age of majority

• Proof of steady employment

• Active bank account

• Permanent address

4) How much can I borrow?

The maximum amount that can be borrowed at once is dependent on the lender but is generally 30% of your take-home pay.

With successful repayment, the loan company may subsequently increase the amount you can borrow.

5) How do I apply?

Lenders want to make the borrowing experience as hassle-free and convenient for you as possible. Most lenders allow you to easily and securely apply:

• Online

• In-person

• Telephone

6) What is the repayment process?

The repayment process typically involves automatic withdrawal of the full loan amount by the lender on the due date.

A fee is applied and interest will accumulate if there is insufficient funds in your bank account on the due date.

Conclusion

A payday loan is a valuable financial tool that can be used in the event of unexpected or emergency expenditure.

Taking out a short-term loan with a reputable lender is quick and easy and can help financially support you until next paycheque.

This presentation was created on the behalf of https://www.zaplo.ca