Payday loan – A quick resource to felicitate urgent cash need

-

Define the payday loan

Payday loan is a type of short term loan which can be granted against your monthly pay check.  This short term loan is also known as cash advances. The loan works alike to a credit card system, where you have the facility to get the benefit from prearranged amount of credit. However, the loan sanction is entirely subjected to customer’s payrolls of previous months along with the employment records. 

How the system of payday loan works

 The legislation regarding the loan changes from country to country.  Take in the example of United States where each state operates upon their distinctive rules regarding the payday loan. In fact, many US states has limited the range of annual percentage rate (APR) that payday lenders can charge from their customers. However, there are few US states which are not confined to this rule. They have imposed very few restrictions on payday lenders. Typically, payday loans are extremely short in nature owing to which the difference between APR and effective APR (EAR) is substantial. In addition, there is no compound interest charged on payday loans.

Method for loan sanction

As aforementioned, solicited customers monthly emoluments is taken in to the count while granting the loan.  However, there are numerous payday franchises which work upon their distinguished set of rules. They just not consider monthly pay cheque while granting the loan. 

The borrower is just expected to walk down the store to avail a small amount of loan. In lieu of this loan, the customer is asked to submit a post dated cheque as the security.  However, lenders also ask for few more documents along with the personal information to complete the screening process. After the due screening the loan value is granted. However, in some cases the loan granting process can be made fast track, and loan value can be credited within the 24 hours of documents approval.

Online payday loan

In recent times the entire process of payday loan has put online. Therefore, there is no need to visit the store physically.  All you required to do is fill an online form. The rest screening process remains the same. The repayment of loan is done through an electronically drawn application form.  The repayment of loan is done on monthly basis.  

Drawbacks of payday loan

Payday loans are subjected to fierce criticism from time and again owing to higher rate of interest as compare to other bank loans. As per the rough estimate payday borrowers are from lower strata of society. Hence, payday lenders usually prey the young people from low income group.  Due to such loan schemas, it is quite tough for the poor people to do the asset accumulation. Moreover, the intrusion of payday lenders into the social media like face book and twitter is direct violation of advertising regulations.  Payday lenders are not allowed for such type of advertising.  Moreover, many payday lenders resort to mean practices for the loan repayment, if the cheque is bounced.



Comments

Post a Comment

Popular posts from this blog

Thai Boxing Techniques: An Excerpt

-
It is an ancient martial art now extremely popular across the world. Broadly, Thai Boxing Norwich is fought using punches, Kicks, elbows and knee strike. It involves entire body movement of the fighter to execute the techniques perfectly. The same goes with Kick Boxing Norwich and Martial Art Norwich . These two are now practiced in the various parts of the world. The combat sport requires a lot of agility adept moves from the fighters in the ring. The fighters have to strive hard and learn all the popular techniques of the sport in order to rule the ring. Though, there are many strategies associated with the sport, below mentioned is an overview of some of these popular techniques: Punching also known as ‘Chok’, this technique was quite limited in use during the inception period of Thai boxing. The tactic is executed with straight arm and tightly close fist hitting forcefully on combatant face. This tactic is used as a safety measure to guard the fighter against the strikes from ...
Read more

The history and origin of Thai Boxing

-
The magnificent past of Thai Boxing Norwich can be traced back from the medieval ages. The discovery of pre-twentieth century written records vouches for the existence of Thai boxing during those days.   There after knowledge had been passed to generation after generation through the oral tradition. During those days it was fought in wars using bows and arrows. Arms, legs, knees and elbows were used as a weaponry items in the combat sport. These were treated as natural weapons. Undoubtedly, systemized application of these natural weapons had evolved the Thai boxing as fighting sport for the battle field. The glorious past of Thai Boxing is deeply intertwined with the rich culture and history of Norwich itself. During the Sukothai era lasted from 1238 to 1377 Thai boxing was the source of earning money for its competitors, thereafter the combat sport was followed as a mode of personal advancement. During this time around Thai Boxing had witnessed many noble skilful practitioners...
Read more

Free online jobs without investment for students

-
There are plenty of options for students to seek out online work opportunity. But do bear in mind there is no short option which can earn you a jackpot instantly. You have to work hard and smart to earn a reasonable amount of money. Being a college student you can at least earn your pocket money through internet. But it is also essential that your studies should not take seat and work taken should be creative enough to further improve your career options. Below mentioned are some examples of free online jobs without investment for students. Most of these works does not take much time and you can do with your time suitability. Google AdSence This is one of most highly paid option available on internet. These days many college students are engaged in blogging, infect many of them owns a website as well. Millions of people across the globe are working full time or part and earning a good share of money through Google AdSence.  If you are keen in writing blog or own a websit...
Read more