How can you avail these loans?
Through the general process that involves the lenders providing "a short-termed, insecure loan" to the borrowers, the loan money has to be repaid on the next payday of the borrower. The borrowers may need to go through the processes of income verification and providing authentic identification proof. However, many cash payday loan companies do not run any credit check. Thus, you need not worry if you have a bad credit. The next step of availing the loan is the most crucial as it requires filling up a form. Then the borrower issues a postdated check to the lender in the complete amount of the loan including the fees. There are also many lenders who provide free up-front for the loans. In such a case, the post-dated check only includes the loan amount.
Low on cash? A payday is far away? Now, all that you need is a cash payday loan. Yes, it can be your savior. So, a short-termed, insecure loan, which is given to the borrower regardless of the fact whether the repayment of the loans is linked to the borrower's payday, is known as the cash payday loan. These loans are also known as the "cash advances". However, the interest charged by the payday lenders is usually very high.
How does the repayment process work?
On the date of maturity, the borrower is supposed to pay back the lender in person. In any case, the lender may redeem the check. Now, due to the shortage of funds in the account, the check will bounce, which shall, in turn, impose a bounced check fine on the borrower. Added to it, the loan may incur extra interest for the failure of repayment on the due date. The cash payday loans are usually due within a range of 10 to 14 days. This time is enough for the borrower to receive their paychecks. On failure of payment, you can, however, ask for a "rollover" for another 10 to 14 days. This may buy you some grains for your hourglass, but the fees get accumulated.
Nowadays, these processes have gone online, beginning with the online form filling to the automated withdrawal of the money from the borrower's account on his next payday.
What are the drawbacks of these payday loans?
These loans offer a temporary solution to the cash requirement of the borrower. The real crunch of these cash payday loans is faced when we fail to repay on the first payday and the loan rolls over for next 10-14 days, with an additional fee. Also the processing costs for payday loans are higher than any other loan.