All that you wanted to know about payday loan

What exactly is a payday loan? A payday loan, also known as paycheck advance or payday advance, could be defined as a small loan which is meant for a short duration – around two weeks - and that which needs to be paid back along with the fees, once you receive your next salary. In other words, imagine that you are short of funds and are in need of financial assistance urgently and cannot afford to wait until your next paycheck. You may then avail a short term loan from any bank assuring them through written agreement that you would pay back the loan along with the charges on your next payday. A payday loan can be anywhere from $100 to $1500.

Going by the very nature and terms of a payday loan, it is also called cash advance loan. The Payday Loans typically serve to take care of any unexpected emergency expenditures that one may encounter. By availing a payday loan facility, you are saved from the awkward situation of asking for financial assistance from either your relatives or friends. The interest rate here may be slightly higher as the lending bank or financial institution will look to serve their interest too while bailing you out of your financial crisis.

The Government rules or legislation pertaining to Payday Loans may differ from country to country and within America, it might vary from state to state. Prior to availing the Cash Advance Services, it would be prudent to know all the terms and conditions governing the advance, as per your state law. As a borrower, you are also expected to issue a post dated check which covers the loan amount as well as the fees. On the due date, you may either repay the loan with interest by cash to retrieve your check or otherwise, you may authorize the bank or the lending authority to encash the check already given by you.

While offering Cash Advance Services, the lending authority may also insist on seeing your latest pay stubs or salary statements in order to make sure that you have a regular source of income. You may have to carry your up to date authorized bank statements too to assure them that you are not likely to be a defaulter with your repayment. Each financing company has its own sets of rules and regulations in this regard, which fall under the broad purview of the state law. Thus, avail a payday loan by all means but remember to adhere to all conditions put forth by the lending institution.