PROCEDURE of APPLYING SHORT TERM PAYDAY LOAN

The procedure of applying payday loan is different in every company. But in general, you must follow the steps below:

EARLIER PROCEDURE

To get a payday loan in most cases, all you have to do is complete an application form. The form will ask for basic information about your personal information, your job, and your income since the loan amount will be based upon that information. They usually also ask for bank account numbers and Social Security Numbers. Regarding the amount of money, some people choose to ask for a certain amount of money when applying for their loan but others allow the loan company to decide how much money will be offered to you.

Once completed, the application is forwarded to the payday loan procedures lender for review. If the applicant meets the minimum requirements they will be notified (typically via email if you are applying online) that they are approved.

APPROVAL PROCEDURE

Once approved the applicant will be asked to print and sign a signed copy of an agreement/contract with the loan amount, fee, and terms specified. You should read carefully the loan's terms and conditions, as well as make sure the site is secured before giving any information online. Lenders may also require faxed copies of paycheck stubs, bank statements, and a post-dated personal check. For example, a person who wants to borrow $300 would write a check for $360 and date the check for two weeks from now. The customer gets $300 from the lender; two weeks later, the lender cashes the check and gets $360 back, for a $60 profit of finance charges.

The payday loan company will verify the faxed information is correct and administrate the loan. Most payday loans lenders will electronically deposit the loan amount in the applicant’s bank account, depending on the time of day the loan application was received and approved. Payday loans lenders typically do not process loans on weekends.

AFTER LOAN PROCESS

The borrower usually provides a check or debit authorization to the lender for the amount of the loan plus the fee. The check is either post-dated to the borrower's next payday or the lender agrees to defer presenting the check for payment until a future date, usually two weeks or less. On the specified payment date, the payday loan procedures lender will electronically withdraw the loan amount plus specified fees if they don’t receive a cash payment from the borrower.

If the borrower does not have the funds to repay the loan, the loan is often refinanced through payment of an additional fee. If the borrower does not redeem the check-in cash and the loan is not refinanced, the lender normally puts the check or debit authorization through the payment system. If the borrower's deposit account has insufficient funds, the borrower typically incurs an NSF charge on this account. If the check or the debit is returned to the lender unpaid, the lender also may impose a returned item fee plus collection charges on the loan.