Sometimes we find ourselves in situations where our finance just doesn’t make it to the end of the month. Irrespective of how carefully you plan and budget, something unexpected like a car repair or a doctor’s bill might pop up. Payday loans become your number option when you’re stripped of cash and only need extra money to get through to payday.
What is a Payday loan?
As the name implies, a Payday loan is a cash advance meant to cover your expenses until your next monthly/weekly paycheck arises. It gives you quick access to money when you need extra cash to get through to the end of the month. Payday loans are usually repaid after a week or two. The repayment amount is usually deducted from the account you provided during the application process.
What do I need to get a Payday loan?
One of the reasons payday loan is popular among other loan type is because of its easy accessibility. As long as you’re able to provide the required documents, there’s nothing stopping you from getting your loan application approved. Some of these documents include;
- An active account with a bank or credit union, or a prepaid card account
- A job or other verifiable source of income
- A valid ID proving you are at least 18 years old
Some financial service providers might request fo a few extra documents for scrutinization purposes. the use of extra documents include
- Proof of residence
- Confirmation that you’ll have ongoing employment for the duration of the loan period
The absence of strict requirements and application procedures is one of the unique features of the payday loan. After application and submission, the loan amount is paid into the borrower’s account within 24hours.
How to apply for a Payday loan?
Even though the application process for a Payday loan is termed swift and easy, the steps involved solely depends on the financial service provider. Generally, there are two application methods most financial service providers use. These methods are offline application and online application.
The offline application process as the name implies requires the applicant to physically visit the nearest financial provider’s branch. Though this form of application is old and archaic, it’s still efficient in its way.
Online application on the other hand doesn’t require a physical appearance. This application process can be executed from any location. Financial service providers are adopting this method of application due to the advancement in technology. This application process involves either downloading the financial provider’s app, visiting their websites, and following the instruction.
The application process has even been simplified to an extent where you can access the loan by dialing a USSD code. All you have to do is study your desired financial provider and follow their application process.
How do I repay my Payday loan?
Payday loan benefactors are required to repay the loan with a single payment by your next payday. Check for the date in the agreement or request for a specific due date as lenders have varying repayment terms.
Depending on the loan provider, you may have a few repayment options. These options includes;
- A postdated check when you apply
- A check on your next payday
- Online through the lender’s website
- Direct debit from your bank account
- Another form of credit
In a situation where you don’t pay the lender as at the due date, they can electronically withdraw the money from your account.
Conclusion
As an employee/employer with responsibilities, your monthly/weekly paychecks may not be able to entirely cater for your financial needs. Payday loans is there to act as your financial substitute until your next paycheck.