Today, we are coming back to the basics on the blog, because in the Financial Market we think that it is worth regularly recalling basic issues in the field of finance. What is the definition of payday loan, how much can we borrow and when do we have to give back the money?
Online Payday Loan – how much and how much?
Cash loans are short-term loans offered by companies that are not financial institutions (parabanks). They are concluded for a relatively short time, hence the name, because the repayment period does not exceed one month (they are granted for a period of 1-30 days).
When entering into a payday contract, we must reckon with the fact that we will have to pay back the money borrowed up to a month, usually in one installment. The amount of payday loans usually ranges from 2 to 3, and sometimes 4,000 zlotys.
Online Payday Loan – on what contract?
Contracts for granting payday loans are civil law contracts. The contract is concluded between the granting company (parabank) and the borrower (customer). In the contract, the customer undertakes to repay the loan, plus interest and commissions, within a specified period.
Always pay attention to whether the loan agreement clearly states the terms and date of return, along with the amounts of all fees. Contract templates are usually available for viewing on borrowers’ websites, just like here.
Instant ‘good’ for everything
It can not be hidden that nowadays payday pay is the only way for many people to get the money they need. Debt, bad credit history or lack of stable income closes the door to traditional forms of borrowing. This fact is used by parabanks, which are willing to give away money, and the public uses such opportunities.
There is nothing wrong with payday loans if they are incurred reasonably and with full responsibility , because the percentage will be high and the debt must be repaid anyway. Money from such a source can be used for any purpose. However, when taking out a loan, always remember that if we do not make it on time – we will have to pay back much higher amounts.