The Payday loans, which is also known as cash advance, are short-term, low-balance, high-interest loans typically offered by banks with their funds to be borrowed on a post-dated check that is cashed on the borrower’s upcoming payday or salary. The loans are meant to be very easy and quick, and have very limited qualification loan requirements. This loans are intended to help customers get some quick cash to hold them over until their next paycheck or salary, hence the name payday loan. The payday loans are also called cash advance loans, post-dated check loans, deferred deposit loans or the check advance loans.
Some Payday Lenders Only Demand Borrowers Meet The Following Conditions To Qualify For A Loan:
- Applicant or borrower must have an active checking account.
- The applicant or borrower must provide some proof of income.
- The applicant or borrower must have a valid identification.
- The applicant or borrower must be at least 18 years.
However, the loan application and qualification process can be as fast as 15 minutes if you can quickly show you meet all their requirements. But in some situations, the borrower writes a check for the loan amount plus the lending fee, and the loan lender will hold onto the check until a predetermined due date.
However, once the loan is due for payment, the borrower either allows the lender to cash the post-dated check, pays off the loan, or writes another post-dated check that will cover the amount of the loan taken. It is good to note that many borrowers run into financial trouble with these kinds of loans when they can’t pay them off once it is due. And because of these, each time the borrower extends the loan, more fees are incurred.
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The Payday loans can be very accessible to customers with low income and usually do not require a post-dated check. The qualifying loan amounts vary depending on the borrower’s income and the payday loan lender, but however, most financial institutions have their own rules regarding the payday loan amounts. While some financial institutions even limit the ability of borrowers to have multiple outstanding payday loans in an attempt to keep customers from borrowing large sum of money at the same time. Please note that loan amounts can vary from N1, 000 to N500, 000 depending on the borrower’s monthly income.
Some financial institutions offers a range of payday loans, which vary between N1, 000 and N500, 000 which are given at 3% of interest rates. Sometimes the financial institution decides how much every individual can receive from them. And as a rule, the loan must be paid back by the end of the month or any time you receive your salary, whichever happens first. And as soon as the loan matures, the necessary amount will be retrieved from your account as due.
Access Bank Payday Loan Interest Rates
As mentioned above, some financial institutions offers a range of payday loans, which vary between N1, 000 and N500, 000 which are given at 3% of interest rates.
Loan Repayment Plan
The loan repayment plan that is available in some financial institutions regarding the payday loan is between 1 to 12 months