What are payday loans and is it worth using when we are in financial need?
It has been assumed that the terms “loan” and ” payday loan ” are most often associated with entities offering non-banking services, whereas loans and all kinds of loans are traditionally associated with bank branches.
Theoretically, this is the case, but there is a service appearing in offers, such as financial assistance offices, which was also to be referred to as a loan. Loans-payday loans are a good solution for people with small and urgent needs.
Those who need a clear, but not too large amount of money for a short period. For those who do not want to get involved in long-term repayment of benefits with exorbitant amounts.
Let’s get acquainted with the definition and conditions and specifics that are associated with payday loans.
Loans – payday – what is it and how to get it?
A payday loan is nothing short of a short-term cash loan. It is characterized by the ease and the small amount of time it takes to receive it.
The monetary amount that is then provided to us is transferred to our account or to our pocket no later than within a dozen or so minutes of approval by the institution of the application submitted by us.
It can also be submitted in writing or online, but on the latter issue – well. The money we get can be spent on any goal that interests us.
It may be anything from our expenses, such as covering the purchase of an expensive but necessary thing or simply buying anything from our current needs.
The main advantage of interim loans is their vast offer, as well as common and easy availability throughout the country. It results from the unrestricted regulations related to granting them.
Otherwise, we can define a short-term loan as the so-called a loan ie a loan without the need to verify our loan history in the loan Information Bureau.
What are the average amounts of payday payments?
The payday loans are granted on the basis of civil law agreements. They are always provided in relatively low amounts, the amount of which can not be more than PLN 4,000. Much less than in the case of long-term loans.
The lower limit is around PLN 50-100. It is worth remembering that the real interest rate is in most cases slightly higher than cash loans offered by banks.
On the other hand, many loan companies anticipate promotion with an interest rate of 0% for the first customers. More importantly, payday loans are not repaid in installments, only one amount at a time.
What is the submission of an application for a loan-payday loan via the internet?
If we do not like or just do not have time to walk to the municipal outlets of non-banking services – there is a way. The dynamic development of the Internet in recent years has also significantly contributed to the development of online banking.
Along with technological advances, non-bank companies started to chase. Currently, they offer equally fast and transparent websites as banking competition.
Availability of payday loans via the Internet is becoming more and more common and more convenient. As mentioned above, this is one of two ways. In recent years, more and more popular.
Online payday loans are undoubtedly one of the most convenient and fastest ways to obtain the emergency amount of money we need at any given time.
The procedure that is associated with completing the online application is not complicated. Most often, it is simplified to the limit and is incomparably more transparent than, for example, bank websites.
Filling in the formalities does not often take more than a few minutes at most. If our application is considered positive, the funds go to our account even a few minutes after submitting the form.
The same as in the case of this stationary operation, but we save time by doing it from a home chair. If we decide to take a loan-payday via an internet connection, it is worth using the important advantage of the network.
Let’s spend a few dozen minutes and get acquainted with the offer of various non-bank companies to get to know the most advantageous and the most convenient offer for us. Let’s not act impulsively, let’s calculate and check all the exact conditions we can read on the website.
As the offer is huge, let’s be patient. Let’s also remember to clarify our financial expectations to facilitate the procedure for choosing a good offer.
Loans-payday loans and security
When discussing the issue of loan-payday loans, you can not forget about security. First, we will discuss the issue of security from the perspective of the lender.
Although the procedures related to incurring the loan-payday loans are extremely simplified, transparent and efficient, this does not mean that the bank has no control tools. Each non-bank company has an extensive and efficient system to assess and verify the credibility and financial capacity, and even the history of borrowers’ liabilities.
Standards, which have been growing steadily in recent years, put at prices more and more to control who is making commitments and whether this person is worth trusting.
This should not surprise anyone – it is in the interest of a non-banking company that the largest possible portion of borrowed loans be repaid on time and in full.
In addition, the aim is to avoid contracting with consumers who already have other major financial obligations in other companies or banks.
It is not the best to look at debtors and those who in their history have been shown late payment of installments or overdue loan. Outlets avoid customers with excessive debt.
Distrust of non-bank companies
It is the most desirable, but we should assess the credibility of each institution according to individual indications. We should reasonably avoid adopting prejudices and common opinions.
Where does the distrust in society come from? It results from the cases of dishonest companies being publicized in the media, which exploited ignorance, desperation or a weaker position of lenders by introducing them in the so-called spiral of debt.
An example of such practices may be a situation where a loan company accepts, for example, a loan security in the form of a mortgage, valuing it extremely low, or giving a payday with an extremely high APY. This usually creates a serious burden for the lender in the future, which he does not realize.
The non-bank loans market is treated with reserve for these reasons. For a long time, many companies have been trying to improve the negative image of this industry.
They declare, for example, attachment to high corporate culture and compliance with legal and ethical procedures. This is especially emphasized by the Internet loan companies associated in the Loan Companies Association.
In addition, it is recalled that the market for non-bank loans is regulated in some way by legal provisions. They limit, among others maximum costs of loans via the Internet .
This, of course, aims to protect consumers from dishonest practices of black sheep in the industry. They feed, for example, on people’s naivety in a particularly ruthless manner.
It is worth bearing in mind that even so-conditioned conditioned loans require us to appropriately recalculate our financial capabilities and systematically perform the contract.
In contrast to other offers of this type, we commit ourselves to a quick and important – one-off repayment of our commitment.
Speed and ease in obtaining a loan-payday, unfortunately, also means that we must also quickly mobilize ourselves to get rid of the non-bank company.