Need some Cash Quickly, Know about the Payday Loans
In cases of emergencies and unforeseen expenses, having to wait for payday may be impossible. During such times, a person may be forced to use other means of obtaining the needed cash. There are people who will sell household items such as furniture or electronic goods. Others on the other hand opt to get the money they need by obtaining loans. Our focus here is on those people who get the money by use of loans.
Of all the loan types, the payday loans are one of the most common. In some places, you will find it going by different names such as salary loans, payroll loan or even short-term loans but they all refer to one thing. This is a short-term loan given to people who are employed. The fact that the borrower is expected to pay the loan on his payday is what gives this loan its name. Here are some of the important things that an employee in need of cash and thinking of getting a payday loan should know.
That only persons expecting employment salary qualify for this loans is the first thing you need to know. Bank statements and pay stubs are some of the documents the lender may require as proof of your employment. There, however, are other firms and individual lenders that use different means of verifying your details of employment. These methods used to confirm your details should not worry you as their main aim is to check if you qualify for a loan and if you do, how much you can get.
Though the payday loans are referred to as unsecured loans, the lender has to have some assurance that they will get their money back once you are paid. If your loan application process is done manually by filling papers, the lenders may require for you to write them a post-dated cheque. The check is given back to you after repaying the amount you owe the lender. The lender has the right to cash the cheque and obtain his money if you fail to pay back the money. On the other hand, doing an online application involves you authorising automated remittance to the lender once money is deposited into your account.
You also need to know about the interest rates charged on the loans. The interest rates on these loans are regulated by the government due to rise in cases of people being charged excessively high interest rates on the loans. Currently, the rates in Australia stand at twenty-four percent per month. If a firm or individual lender charge more than twenty-four percent interest per month for payday loans, the person or company is running their business against the set regulations.