Short term cash loan industry in the United States emerged as an outcome of economic vacuum in the credit market. As the sources of short term credit dried up, there was no place where people could look to in case of financial emergency. Therefore, the federal government legalized the working of payday lending firms and set some rules for the same.
Online payday lenders offer cash against your pay for the short term. There are myriad reasons to borrow cash for meeting your urgent expenses. Some of them may be:
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Medical emergency – minor road accident, fracture or small operation
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Vehicle disorder
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Kids’ school fee
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Unexpected wedding shopping
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Grocery bill
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Pharmaceutical bill
Due to such expenses, your monthly budget gets upset and you fall short of money for meeting regular expenses. In such cases, a fast cash loan can help you get back to a stable situation again. However, while borrowing from online lenders you must be acquainted with the every detail of this loan system.
Features of Online Cash Loan
Here are the common features of online cash loan system:
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Faster processing: Payday loans are faster to get than bank loans and credit card loans. Most of the time, you do not even need to submit your credit card and other details. Even if you have to, the minimum time for approval is one working day. Hence, within 24 hours of filing the application, you can get cash deposited to your bank account.
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No credit history required: Such loans do not take into account your previous credit record. It means that there are maximum chances of your loan approval despite your poor credit history.
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Short-term loans: The most striking feature of payday cash loans is their short duration. Since these loans are advanced to you against your salary, you are supposed to pay them off with the next salary cheque. Thus, the loan period is between one and two weeks.
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No need of personal visit: Online lending firms get every required detail through their online form. So, you need not pay them a personal visit in order to secure a loan.
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Flexibility: Although these loans are to be paid off in short period, you can get the term extended in emergency cases. Moreover, if you are unable to make lump sum payment, you can divide the amount in various instalments. Alternatively, you can also choose to pay off the principal amount first and interest in easy instalments.
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Maximum loan amount: The maximum loan amount one can borrow from online lenders is $1500. You can borrow an amount up to this slab, if you have a stable job with the monthly salary of at least $1200.
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Fee charged: Lenders charge a fee ranging from $10-$30 per $100 of loan granted. This fee may vary from lender to lender. Normally, this fee is added to the amount that you have to repay them at the end of the term or deducted upfront from your loan.Instant cash loan is an excellent way to cover up your urgent expenses till the time your pay cheque arrives. However, enquire a good deal about the company before borrowing a loan from it.