Payday loans meet the urgency of the individuals who look for various ways of getting fast cash. Interest rates imposed on the loan by the lender may be high but the loan amount surely helps in paying off unexpected medical bills or tuition fees or heavy taxes.
There are times when one among feel the urgency of having fast cash. To deal with these kinds of emergencies, there are companies which offer payday loans. The hassle-free process lets the loan applicant have the cash within 15 minutes.
To apply for a payday loan, an individual who has an urgent short-term need for cash just needs to go to a payday lender and fill out an easy application form. A working individual with a checking account and correct identification documents can borrow anywhere from $100 to $500 until their next payday.
These loan applicants are asked to write post-dated cheques of their active account or provide the lender company with written authorizations for the loan amount. On the next payday the loan is either repaid in person by the borrower or the lender cashes the cheque provided by the loan applicant or initiates an electronic funds transfer, that’s it.
Generally, individuals strive hard to meet daily requirements of their family by earning sufficient amount from their jobs. But sometimes few unexpected situations like a medical bill or tuition fees or heavy taxes throw off the financial schedule of middle-income individuals. These unwanted situations force them to find refuge in payday loans that meet their for short-term credit requirements. The transaction costs are pretty too high but payday loan acts like a rescuer in tough situations.
Various surveys show that millions of Americans apply for short-term credit every year. According to the statistics, payday loan meets their urgent credit needs. Jobless individuals who face problem in managing household-budget pressures look for various options to get fast cash. Payday loan helps them in meeting their financial requirements with preserving access to credit.
It’s a fact that payday lenders charge pretty high interest rates from their customers. For example, 15 USD fee may be charged on a 100 USD advance for a couple of weeks that amounts to a 391% annual percentage rate (or APR). When expressed as an annual rate, the amount may seem to be quite high. Actually, the typical term of payday loans is usually for two weeks. The customers need to note that the annual interest rate which is charged on a payday loan is much lower in compare to the fee charged on a bounced cheque or a late mortgage or credit card payment.
The so-called high interest amount on payday loans pales when one compares it with the cost of repairing a car. While going for a payday loan, one needs to check whether it is a licensed lender or not. Registered lenders disclose all the loan terms and conditions before giving the credit to the loan applicant. The loan applicant should ensure that dollar amount of any fees and the APR is clearly mentioned on the signing document provided by the lender.
To keep control over the forgery, state agencies and also the new federal Consumer Financial Protection Bureau regulate and supervise the licensed payday lenders. They ensure that the firm is working in compliance with regulations applicable to banks.
After graduating in economics from National University of Singapore in late 70’s Mr. Jessie Bromberg chose to work for banking and finance in Singapore only. After working with various banks, financial institutions and educating people about personal finance, he has now decided to share his knowlege about loans,specially related to payday loan in Singapore with us.