Payday loan is not a new term. These loans have been available in Canada since 1995. These loans took time to capture the market but now every second person is aware of what it entails. If you are looking for getting some instant cash on hand for a short period of time then payday loans are the right choice. Over time thousands of storefronts both online and offline have started lending payday loans. If you are in need of some money to pay electricity bills or meet other urgent needs then you can consider payday advance to meet your needs.
Payday loans also known as instant loan or fast loans. The main advantage of these loans is that you don’t have to fulfill many formalities while applying for it. The term fast loan is really apt because you can get payday loan within matter of few hours after applying. Many people who rely on their monthly job income to meet their expenses can sometimes find themselves in a crux when their monthly expenses go higher then they earn. Or situations when their next paycheck is 15-20 days away and they have to pay for gas, water or electricity bills within a week’s time. At such times, payday loans seem a great option for people to meet their urgent expenses without getting them disconnected.
Payday loans work on a simple philosophy. They are short term loan given for a time period of two to four weeks. They come with a good rate of interest that a borrower needs to repay along with the original sum borrowed. The payday lenders will charge penalty if loan is not repaid or time or extension of its repayment period is demanded. For those who understand that payday loan are easy to get but must be repaid on time to save themselves from going under debt can use such loans time and again at times of urgency. People using payday loans to enjoy a better lifestyle or for purposes other than meeting their immediate or urgent needs may be stuck in the payday debt loan forever if they do not repay it in time. The rate of interest attached to borrowing payday loans is very high as compared to other available lending options. Fast loans do not impact the credit score of the person and don’t usually consider it as a factor when approving a loan for a borrower.
If you choose to take payday loan anytime then you must first evaluate in advance whether or not you would be able to repay it in time. The high rate of interest and the higher rate of penalty attached with payday loans makes it difficult for the borrower to repay it if they miss their due date.
Are you looking for payday loans in Canada
The benefits of taking payday loans as well as the ease of its availability attract many people to choose it as a first option when need arises. You can even apply for payday loans online from the comfort of your house and wait for the company to send the money in your account for you to use it. The payday loan companies often sign an agreement with the borrower that describes the rate of interest, fee charged or amount lent etc on it clearly.
If you find anything in your loan agreement that states other amount or fee that you have not been detailed by the lender then you must discuss with him before signing it. The government provides several laws to protect the people against cons of such loans. It is mandatory for a lender to describe the rate of interest charge, date of repayment along with the amount that the borrower needs to pay on due date clearly in the contract. If the borrower doesn’t find such information in the contract or lender asks for any additional fee on the date of repayment then he can file a complaint to the ministry of consumer protection that governs payday loan industry in Canada.
Each province in Canada has its own rates of interest and set rules that payday lenders have to follow. So before you apply for payday loans you must read various rights that protect the consumers from payday loan cons. You can search for such laws online and read them carefully to know your rights. A learned customer will question the lender and he will know that he cannot deceive or cheat the borrower as he is aware of protection rights. If you are applying for payday loans online then you can clear your doubts and questions by calling their customer care. This way you will be able to enjoy manifold benefits of quick loans without falling in traps created by lenders to capture more money from innocent borrowers. First time borrowers must be extra cautious and should repay their loans in time.