Payday Loans- An Overview

Payday loans are the loan which is provided for a short period which generally needs to be paid back by the next pay day. It is means of getting fast cash in case of any emergency financial need. The main aim of this payday loan is to provide its customer a temporary financial relief. This is a great relief when you do not have money in your checking account and a medical emergency or anything of the sort comes your way and pay day is still 10 or 15 days far. You do not need to panic in such situation as payday loan can be a solution to such problems.

There is no lengthy procedure to apply for payday loans. You just need to fulfill an application form available online on standard websites. Once you have filled the form it can be accessed by several payday loan companies and they will send their quote on your email. The letter sent by these companies includes the terms and conditions of providing the loan along with the amount that can be sanctioned. The payday loans are short term loans which need to pay back in the stipulated time period. The whole process of approval to sanctioning can take to a maximum of 72 hours but there are companies which can process the whole thing in just couple of hours. The loan amount can vary from $1000 to 1500.

The rate of interest on the payday loans are very high, somewhere around 10 to 30 percent. The high rate of interest is because the loan is given for a short period of time. Also, the sanctioning of the loan is without any document and irrespective of bad credit score. Since the risk with this type of loan is high, the rate of interest is also high. If you fail to pay the loan on time, the borrowed amount may double in no time. Along with it you may need to pay the late charges and kind of fees that are agreed upon in the agreement. This is the reason why it is advised that you go through the terms and conditions before going for the loan.

Most of the payday loan agreement says that the whole loan amount will be withdrawn from the checking account the very next day of the payday. So make sure you have enough money to pay back the taken loan.