A payday loan is a type of short-term lending where an individual borrows a small amount at a very high interest rate. The borrower will typically fill out a short application form in which he or she indicated the desired amount. A loan usually is repaid on the day the borrower gets paid. These loans are also called “cash advance loans” or “check advance loans”.
Although the US Credit Terms Transparency Act requires payday loan companies in Lafayette LA to disclose full details of the fees, they charge to clients. Most payday borrowers work with bad credit history and low incomes. They may not be able to get a credit card and are forced to contact the companies that offer such loans. Even if the borrower feels that the fee can be fair, for example, $12 for $100 for seven days, an annual interest rate can reach 600% per annum. Most payday loans are repaid within 30 days, but the term can be extended for an additional fee, and the loan size usually ranges from $100 to $1,500.
Why are payday loans from MFIs so popular?
There are many reasons for cooperating with microfinance institutions. Online payday loans in Louisiana are available to people of almost any age. The main condition is to be of legal age. The upper limit can be different, but it typically ranges from 65 to 70 years.
It is worth taking a payday loan from a MFI because there is an opportunity to:
- get funds within 24 hours without collateral;
- fix bad credit history;
- get a loan without unnecessary paperwork.
Microfinance institutions are loyal to their clients, therefore they provide loans to those who have been refused by banks. Credit history is not taken into account.
You can get such a loan even if you are not officially employed. This is relevant for people who have income but are unable to get the desired loan amount from the bank due to the lack of money movement in the account or the required work experience.
It is important that you can submit an application online 24/7. There is no need to wander around the city seeking fast cash advance. Applications are reviewed almost instantly.
Things you need to know about MFIs
Microfinance institutions offer fast payday loans online, and it is not required to collect a large package of documents. You do not need a certificate of income or proof of solvency (issued by the tax office). You won’t need guarantors or collateral, even if you need a large loan amount. The likelihood of the application being approved is very high.
It is important that you can save time. It will take only 15-20 minutes to complete the application. Money is transferred to the bank account almost instantly.
MFIs offer different interest rates. However, the MFI’s pricing policy is very loyal due to the desire to attract new clients.
How payday lenders check borrowers?
Microfinance institutions have certain requirements for potential clients. They are very relaxed. For this reason, such loans are given to almost every adult person who legally lives in the USA. Loans are also provided to those who have taken loans in banks and have not repaid them at the time of application.
Your application can be rejected if the application was filled out incorrectly or incomplete information was provided. Sometimes loans are not provided to those borrowers who did not repay the previous loan from the microfinance institution but already want to apply for a new one.
How to choose a payday loan company?
Before contacting a microfinance institution, you need to study the following information:
- requirements for potential borrowers;
- the amount that is issued to new and regular customers;
- interest rate;
- payment methods;
- repayment methods;
- a loan extension option.
A good option is to read customers’ reviews. Usually, clients write about all the pros and cons of working with a microfinance institution.
It is not difficult to choose a reliable organization via referral services like mylcu.net. MFIs strive to attract as many clients as possible, therefore they try to offer the best conditions for borrowers.