How Online Payday Loan Process Works
In Australia, payday loans are becoming increasingly popular, with increasing number of lenders specialising in offering small, short-term loans. If you are in need of small amount of monetary assistance, a payday loan could be the most convenient option for you. You can easily draw online comparison to find out which lender is right for you and how quickly you will receive a payday loan. Most lenders offering these loans will keep the process quick, simple and hassle free, requires you to fill in an online form and some document before approval.
Borrowers can start with their payday loan application process by comparing the lenders. The first important step is to find the right lender. Make sure you thoroughly review the loan amount, fees, renewal and loan term to ensure you are applying for a loan that you can repay with ease and will meet all your needs.
Requirements and regulations may vary among lenders. Therefore, once you have found the right loan lender you should carefully review the eligibility criteria and required documents. You should know the application criteria and the information required by the lender when you apply. Usually, you will need to confirm that you are a citizen of Australia, over the age of 18 and receiving a regular income. As far as documentation is concerned, you will have to provide your employment and financial information along with last 90 days bank statements. Before you start your application it is important that you check the requirements of the lender.
Once you have submitted your application, lender will let you know if you have been approved or not within just a few minutes. This is because most of the payday loan lenders today utilises online application and verification system. If in case you have submitted incomplete or incorrect information, the lender will contact you. In such situation, your application may get delayed.
Upon approval, you can get the approved fund deposited right into your bank account. But before that you will need to sign the loan contract. Most of the time lender will send you an SMS or a digital copy of the contract that you can sign online without having to visit the lender in person. Only after you have signed the contract, the approved cash will be disbursed. Make sure you carefully review the contract before signing it as it will set out your loan terms, interest rate, APR, repayments amounts and fees for late payments or defaults. If you have any query or confusion, get in contact with your lender.
The amount of time taken to get the approved cash deposited into your bank account will differ between lenders and will depend on who you bank with. If everything goes well, you can receive the approved cash in your bank within minutes. To avoid delays consider applying for a payday loan during normal working hours, fill out the application with complete and correct details and consider bank holidays.
Understanding the capped fee by payday lenders is important, no matter whether you are applying online or in-store. If you are applying for a loan of $2,000 or less, lenders can charge 20% of what you borrow as establishment fee, 4%of what you borrow as monthly fee, government fee or charges, default fees and late payment fees in case you do not repay when the loan is due, and enforcement expenses if you are taken to court due to non-repayment of the loan.
Online payday loan can be of great benefit to people in need of short term cash. Application for these loans can be completed in less than ten minutes and you could get the approved amount almost on the same day. Most lenders also offer repeat borrowing facility, where you can easily borrow from the same lender for a second time. Some lenders also offer free payday debit cards to give you instant access to subsequent loans. Another big benefit of applying for a payday loan is transparency. Lenders should publish their charges, fees, and other relevant information online, which make it absolutely easier for borrowers to compare online payday loans.
Though, you need to keep in mind that online payday loans are not meant to be a long-term financial solution. They should be repaid back when the loan is due or else you are likely to incur lots of late fees and other fines. It can also have negative effect on your credit rating.