Payday loans are a specific type of loan that has its own rules. The name is also not accidental, because this type of loan is granted for relatively low amounts and for short periods, i.e. for a short time.
Loans are usually granted for 30 days and a maximum of 2 months. Before making a decision, it is worth taking a close look at the regulations and the loan agreement, because non-bank institutions are often associated with dishonesty and high hidden costs. How is it really
Payday loan – basic information
Payday loan is a type of cash loan with a characteristic short repayment period. They are offered by non-bank companies and can be taken even online. In addition, a loan for 60 days or 30 days is a loan with minimal formalities. This means that you must have a valid ID to take it.
Most institutions grant loans to persons over 21 years of age, it is also necessary to have citizenship. It is also possible to take a loan for free, i.e. one whose return amount equals the actual amount that the borrower receives on the account. In order to receive such payday loans, it is also necessary to present a certificate of fixed income and no entries in the BIK register and the like. In addition, loans for USD 0 can only be granted to persons who have not previously used payday loans.
2-month loan – how much can you borrow?
Short-term loans, such as a 2-month loan , are loans ranging from 1000 to 5000 USD. This, of course, depends on the lender, who takes into account the possible risk. These are relatively low amounts compared to loans granted by banks. In addition, it is worth knowing that many non-bank loan companies use grading, i.e. loan limits. This means that new customers can benefit from lower amounts than people who have already borrowed in a given place before.
As a rule, the first loan in a non-bank institution is not higher than USD 3,000. This type of loan is most often decided by people who need a sudden injection of cash for current needs or who have lost financial liquidity. Therefore, a 60-day loan is often a way to pay off bank loan installments.
Payday payback period
The payday loans can be taken for a period of two months, i.e. 60 days, or 30 days, or even shorter, i.e. for 14 days. Everything depends primarily on the amount – the larger, the longer the repayment time and the contract that will be signed between the lender and the borrower. A lot depends on factors including such as stable earnings.
Most payday loans are taken at the time of losing financial liquidity and are a way to quickly repay other debt. In such a situation, it is worth considering consolidation, thanks to which it is possible to solve many cases in an efficient manner. Payday loan is one of the most often consolidated loan services, because tempting offers often turn out to have a lot of dangerous hooks.