Currently, payday loans are very popular due to the low loan interest rate. It is impossible to know how long interest rates will remain so low, no one can see the future. According to experts, further decline is not expected, and the interest rates on loans are likely to increase.
That’s why everyone is trying to get a loan right now, while interest rates are so low that payday loans tend to have a fixed interest rate. Borrowing a payday loan is not too complicated and can be done in a few days, provided you have the necessary documents and meet the requirements set by the bank.
A payday loan will be successful if you pay attention to the following
When taking out a loan, it is important whether you need to offer real estate collateral or not. No real estate cover is required for a payday loan. In this case, the income will be carefully examined by the credit institution as the payday loans are income based, meaning that the bank will be the collateral to repay the loan. Income also determines the maximum amount of credit. The loan taken is repaid from your income, so it is very important for your credit rating how much is credited to your account each month. Many banks have a disincentive to receive your payment in cash. Where the basic criteria allow for employee cash receipts, they usually require a previous year’s NAV income certificate in addition to the employer’s certificate.
According to the pay-as-you-go installment rule, you can currently spend 50% of your income on a $ 400,000 net payment, and over 60%. Changes in the payload of income are expected in the future.
Banks usually do not lend up to 50% of their income, but only allow up to 35-40% of their income to repay the loan installment. At least the income corresponding to the current minimum wage is needed to take out a payday loan. The same can be said about every financial institution, the higher the income you can justify, the better the loan. On average, the APR for unsecured payday loans ranges from 10% to 24% , with interest rates ranging from 9.5% to 18%. With discounts and higher income, the APR can be reduced by up to 8-12%.
The type of income that can be accepted when borrowing a payday loan varies from bank to bank. The easiest way to get a loan is with an employee relationship.
Banks also have age requirements for the borrower
There are minimum and maximum age limits. The minimum age is usually set by banks at 20-23 and the maximum age is set at 70-75. These age limits, of course, vary from bank to bank, with each credit institution deciding on the age at which it borrows.
There are some credit institutions where the minimum age is 18, and there are also those where the upper age is 65. If the borrower does not reach or exceeds the age specified by the bank, the involvement of a debtor is required. If you do not want to involve a debtor in the borrowing, you need to adjust the maturity to the age.
Whether you are applying for a loan as an employee or as an entrepreneur, it does not matter. If you are an employee, you must provide proof of employment for at least 3 months.
You may not be on probation or notice when applying for credit. If you are applying for a payday loan as an entrepreneur, you usually need to provide proof of at least one closed business year to the bank.