Most people who are employed know how difficult I can be to squeeze all your plans, needs and wants into the small budget that your salary can allow. More often than not, people find themselves going off track and spending more than should on one thing or the other. As a result, most people usually get very broke in the final weeks to their pay day and this is where payday loans come in. Payday loans are short term and high risk loans usually offered by small and medium financial lenders to borrowers as they anticipate their salaries on their pay day. Pay day loans are usually offered at usury rates. These are staggeringly high interest rates that usually exceed the allowed market interest rates by far and are usually offered on unsecured loans. Payday loan lenders usually require borrowers to write a cheque of the total loan amount and the lender fees included and leave it with the lender. The cheque is usually dated post the borrower’s pay date. After this is done, the borrower then gets the money in his account ready for use. On the borrower’s payday, he has the option of either paying back his loan plus the total lender fees or allowing the lender to cash in the cheque once the due, post-cheque date arrives. While payday loans may be a life saver for most people who completely depend on their salary as a source of income, they also usually pose certain disadvantages to the borrower. The most common disadvantage is usually the fact that failure to pay back the loan on time usually leads lenders to charge borrowers additional roll over fees which can be very expensive over time.
Getting a payday loan however, is not as difficult as getting other loans they are usually very simple and quick with very easy requirements to qualify. These requirements include:
- One must be 18 and above- it is an internationally recognised rule that in order for one to take part in any financial transaction, he or she must be an adult of age 18 and above. This rule applies even when getting pay day loans installment loans . Of course the easiest and quickest way to prove that you are above this age would be to provide an identification document.
- One must have an operational financial account- because the borrower has to write the lender a cheque as collateral; the borrower must have therefore, n operational bank account with a well-recognised bank or financial institution. It is from this account, or through this account that the transactions between the borrower and the lender shall then take place. This is also a very easy requirement to comply with as it does not cost much to set up a financial account.
- One must provide proof of income- the last requirement which is also an easy one is that the borrower must provide proof of income. This is because this loan, as the name suggests has several variables that will be depending on your pay day. Your proof of income can be in the form of your previous pay check stubs.
These are some of the requirements one must meet in order to get a payday loan easily.