Payday Loans and their Interest Rates
Do you need some cash immediately? Do you have certain financial obligations to meet, which cannot be kept pending any longer? If that is the case, in that case, these days, you have the option of opting for a payday loan. Over the years, the concept of payday loans has become very popular in the United States, and people rely heavily on it when it comes to getting hold of a decent amount of money to meet their financial requirements. However, it needs to be mentioned in this context that when it comes to a payday loan, a high rate of interest is charged on them. Besides, there are processing fees and different other kinds of hidden charges which you might have to take care of. These days, you have the option of applying for a payday loan over the internet. Are you looking for an online payday loan ohio? In that case, there are multiple different service providers are available.
Important things you need to know about the rate of interest.
As mentioned, when it comes to a payday loan, the rate of interest is considerably higher as opposed to some other kinds of personal loans. The rate of interest can be as high as 780% in terms of APR or annual percentage rate. This would give you some idea about the high rate of interest which you need to bear if you avail of payday loans. It needs to be mentioned in this context that in most of the states of the United States of America, there are certain laws in place, which impose restrictions on charging high-interest rates and restrict them between 5% to 30%. However, the fact that payday lenders enjoy certain exemptions, that allow them to charge a high rate of interest.
Few important things you need to about payday loan
If you are planning to apply for one, in that case, there are a couple of important things which we need to know. They are as follows.
- Payday loans are short term
- A very high rate of interest is charged on them.
- While applying for a loan, you will have to provide a pay stub that has been issued by your employee.
- Usually, these loans can be availed without any collateral.
As mentioned, payday loans, do come with a high rate of interest, still, they are quite popular. The fact that these loans can be availed of quite easily, and the processing time is much less compared to other kinds of personal loans, makes it a very feasible option.