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. Selling of household goods such as furniture or electronic goods is an option taken by some people. For others, the needed money can be gotten by obtaining loans. Here we focus on the people who use loans for the needed cash.
The payday loans are one of the most common types of loans. Though the loan comes in many different names such as salary loans, payroll loan or even short-term loans, the names refer to one type of loan. The loan is given to employed people on a short-term basis. The name payday loan is given to the loan since the borrower is expected to pay back the amount he has borrowed on the payday. Here are some of the important things that an employee in need of cash and thinking of getting a payday loan should know.
It is important that you know that only employees expecting a salary qualify for this loan. 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. Whichever the method the lender uses, you should know it is aimed at establishing your qualification for the loans as well as the amount you should get.
The lender has to get some assurance that you will pay back his money once you get paid though the payday loans are one type of unsecured loans. You will be required to write the lender a post-dated cheque if you do manual loan application by filling the loans application papers. 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. Due to cases of some firms charging exorbitantly high-interest rates on the loans, the government through the tax agencies put a rate on the interests to be charged. The right interest rates for payday loans in Australia today stands at twenty-four percent. A firm or an individual lender, therefore, charging anything above this interest rate is running his business against the lending and borrowing regulations.