Payday Loan Online - PayDay Loan - Loan App Guide description

What is a payday loan?

Payday loans are small, unsecured short-term cash loans that people borrow to get through the month until their next salary kicks in. It is thus, a small principal being lent out, often at a very high-interest rate (up to the order of 10-25%).

Eligibility Criteria for Payday Loans

While the requirements to apply for this loan vary from lender to lender, there are a few common eligibility criteria that should be fulfilled no matter the lender. Learn about the eligibility criteria for these loans mentioned in the ap

Advantages of Payday Loans

If you are planning to opt for a payday loan, you should learn about the key benefits of this scheme.

Interest rates

Though it’s easy to get these loans, the amount you shell out in the form of interest rate is mind numbing. It starts from 10% and can go as high as 25% per annum, including costs such as broker fees. Compare this to personal loans that charge 5% to 10% per annum.

PAYDAY LOAN PROCESS

The standard loan procedure entails a lender giving a short-term unsecured loan to be paid back at the borrower's upcoming payday. Usually, some proof of employment or income is required (via pay stubs and bank statements), whilst according to one source, a few payday lenders do not validate income or run credit checks. Individual companies and franchises have their own underwriting requirements.

Other benefits of Payday Loans:

- Great for people who need express loan services.
- Fast cash payout for emergency fund.
- Install it now and use it whenever you need advance loan.
- Get fresh cash for any needs quickly.
- Fresh app design and look.

• Payday loans are small cash advances meant to help you make it to your next paycheck.

• They are usually easy to get but come with very high fees.

• Many people get trapped in a cycle of payday loan debt because they can continue to roll the loan over for additional fees.

• There are many better options than payday loans for covering your financial needs.

Example:

Duration: 91 days-365 days

Minimum Annual Percentage Rate (APR): 10%
Maximum Annual Percentage Rate (APR): 25%

Loan amount = $1,000

APR of loan = 10%

Loan term = 150 days

Daily Interest = $1,000 x 10% / 365days = $0.27

Total Interest = $1,000 x 10% / 365days x 150days = $40.5

Daily Repayment = $1,000 / 150days + $0.27 = $6.93

Total Repayment = $1,040.5

Monthly repayment example:

In the above example, if you start repayment from January and lasts for five months, your monthly repayment detail is as follows:
January：31days * $6.93 = ‭$214.83

February：28days * $6.93 = $194.4
March: 31days * $6.93 = ‭$214.83
April: 30days * $6.93= $207.9
May: Pay off all the remaining amount, $1,040.5 - (‭$214.83 ‬+ ‭$194.4 + $214.83‬ + $207.9) = $213.54

Our service “Payday Loans Online - PayDay loans Guide” is not a lender and does not issue loans. All lenders who are compared have a corresponding license of a credit institution.