A personal payday loan is a loan that a lender, such as a bank or financial institution, grants to a private person. The customer who receives the loan, in the form of disbursement of money, undertakes to return it within a period of time with the method of payment by installments.
This type of financing is part of the category of “non-finalized” loans, that is, the amount of money received has no restrictions and can be used in the way that the customer deems most appropriate.
The requirements for obtaining a personal payday loan?
The requirements for obtaining a personal payday loan are variable in that each bank or financial institution to which the loan is requested can adopt specific evaluation criteria in the context of directives and rules that are entrusted by the bank . Generally speaking, personal payday loans can be requested by private individuals aged between 18 and 70, provided that they can demonstrate that they have the ability to repay the sum disbursed plus interest.
The reimbursement capacity is the determining factor that is taken into consideration during the preliminary investigation of the file and involves the acquisition of the paycheck or the tax return by the bank, in the event that the applicant is respectively an employee of a company or self-employed.
The expenses of the personal payday loan
Since the institutions that finance personal payday loans are not charities, there are costs to be incurred behind each disbursement of the personal payday loan.
In fact, during the repayment phase, for each installment to be paid to repay the loan, in addition to the repayment of a part of the sum that has been disbursed there are the interests that can be fixed or variable plus any charges or costs (such as the start of the preliminary investigation) which must be indicated in the APR. The Annual Global Effective Rate expressed as a percentage is the actual cost that the customer must pay to the Institute that grants the loan.