Payday loans are loans that are issued in a very short period of time to ensure that the next salary or income in their income source can be repaid as soon as possible. Such loans have very high interest rates and are referred to by different names, such as payday advances, payroll loans, salary loans, small dollar loans or cash advance loans. A payday loan can be offered to anyone, regardless of their reputation. In the case of granting this type of loan, the bank believes that the borrower's credit value is not high because it only provides a 15-20 day period and the period is not long. However, borrowers should remember that obtaining a payday loan does not increase their credibility in the market. However, he should have a stable income, a permanent bank account and at least 6 months of work experience to get the loan.
Today, online payday loans are becoming more popular. One of the best things about online payday loans is their simple application process. The app takes less than 5 minutes to complete, and the portal is usually open 24 hours a day. The borrower can simply submit the loan application online and the funds are transferred to the borrower's account through direct deposit. In this case, the loan will be repaid electronically from the borrower's account directly after the borrower has received the next salary or the expiring check expires. The list of direct payday lenders is as follows:
- Check cash: They submit an application for approval within 5 minutes by providing a loan online or at a US office.
- CashAdvance.com: Once a customer is approved by checking their active account [rather than any prepaid or savings account], they will provide an online payday loan.
- Cash Center: This is one of the oldest payday lenders in the country and has a 24*7 online application portal.
- My payday loan: This will also provide an approval response to the customer within 4 minutes of completing the completed application form. It is one of the largest in its class.
- Blue Trust Loan: It provides $300 to $1,250 in funding for almost every state loan. These loans are repaid for about 6 months, so no repayment is required.
- MoneyLion: They provide loans to almost every state in the country at almost different rates and terms. It provides a loan program for consumers at all ends of the credit score range.
- Net credit: It provides instant approval decisions, while beginners have no borrowing restrictions. Applicants are eligible for a loan of $1,000 to $10,000.
- Maxlend: They have many different loans and terms, and credit value is not a standard to consider. It offers personal loans up to $1,300.
Some jurisdictions limit the amount of loan interest, including payday loans. The annual interest rate [APR] of each loan may vary depending on the method used. For example, in the United States, the Uniform Microfinance Act [USLL] has fixed APR between 36% and 40%. The main advantage of these types of loans to provide the main profit for the industry is that family benefits are increased because people who do not need short-term loans can easily obtain long-term loans and provide users with services that are not available on the market. Loans are usually those who have exhausted all other short-term credit options. Some people also criticize this type of loan on the grounds that they draw money from low-income groups by charging high interest rates. In addition, in some countries, lenders' collection methods are highly aggressive, unlike countries where the standard collection methods are regulated by the United States.