Payday loans are very popular non-bank loans. Their phenomenon is that they are primarily easily accessible. There are many Cream Bank that offer such loans, it happens that you can find a promotion, i.e. a free payday loan. So what are the costs of such loans? How much is payday pay?
Payday loans – what is it?
Payday loans is a financial product offered by private capital companies. They are referred to as micro loans because they usually involve small amounts. Such quick loans are most often taken in urgent situations when there is not enough money for current or unexpected expenses. The maximum amount of payday payday is several thousand dollars. However, this is a liability that must be repaid once at the appointed time. It can be 14, 30, 45 or 60 days. The repayment period depends on the particular parabank, as well as the costs.
What else is worth knowing about payday loans is that they are not intentional. This means that they can be used for any purpose, the loan company does not require an indication of what the money will be spent on. Characteristic for such payday loans is that you do not have to meet many requirements to get them. First of all, you must be of legal age and have an ID card. In the case of higher loan amounts, it happens that the parabank also requires a statement of earnings.
Free loans – is it possible?
It turns out that free loans actually exist, but one condition must be met to be able to use them. I am talking about the first payday loan for free. This is a popular promotion offered by some loan companies. It is to encourage the use of parabank services. The instant payday loan is indeed free if you use it for the first time. Then, receiving USD 1,000, you should pay exactly the same amount. However, you must remember to pay back the loan within the prescribed period. Delayed repayment will result in additional fees being charged.
What are the costs of payday loans?
The maximum cost of non-bank loans is regulated by the Anti-Banking Act of 2018. It eliminates unfair practices used by loan companies and increases the security of people who use such payday loans. To calculate the maximum cost of a loan, use a special formula. It looks like this: (K x 25%) + (K xn / R x 30%), where K is the loan amount, n is the loan period and R is the number of days in the year. These calculations show how much the company can ask for for payday pay.
What makes up the payday pay?
A non-bank loan also includes other costs, besides capital. These include interest and commission, as a rule, preparation fees are charged for granting the loan. Fees for failure to pay the payday loan within the required time may also be severe. Not only the application for extension of this deadline is payable. Cream Bank charge fees for reminders to pay their liabilities. You may also need to charge the applicant with collection fees and court costs.