In your neighborhood, a brightly lit shop makes a tempting offer: it promises access to funds quickly in few conditions. You are behind in your car, rent and credit card payments. What luck! You are entitled to a payday loan! Warning: Do you know the costs of a payday loan? no credit check loans online instant approval
You Want Money Fast. What Is A Payday Loan?
A payday loan is an advance on your salary that you must repay with your next payday. This is an expensive way to borrow money over a short period. These loans can have very high-interest rates.
In most Canadian provinces, merchants offering payday loans are regulated. Generally, they must have a license and register with the consumer protection agency in their area.
What Documentation Do You Need To Present To The Lender To Obtain A Loan?
In general, a payday lender requires proof of salary (e.g., government employment or benefits), bank account and address. The lender may also ask you for a post-dated check for the full amount of the loan (including the loan and interest) or a form authorizing you to withdraw the total amount from your bank account by the due date established in the policy.
What Should Your Payday Loan Include?
The loan agreement should include the following conditions:
- The loan amount,
- The number of days of the loan,
- The total cost of borrowing,
- The maximum price per loan tranche of $ 100,
- The total sum that will have to be repaid,
- The date on which the loan will have to be repaid,
- The name and address of the lender,
- The signature of the borrower.
Some lenders require that the loan agreement is signed in person and not over the Internet or the phone.
What Is The Maximum Amount Of A Payday Loan?
The amount you can borrow is based on your net income in most provinces. In any case, payday loans cannot exceed $ 1,500.
What Is The Total Cost Of My Payday Loan?
From province to province, the cost of a loan varies between $ 15 and $ 25 per $ 100.