At the time of the reform initiated on consumer credits, it is important to identify the various existing credits. With terms often different from those of revolving credit for example, the payday loan, or payday loan, is a consumer credit which has many advantages to finance its projects. See grdnhndy.com for details Further editorial at comv6.com
First of all, remember that the payday loan is a classic amortizable loan which corresponds to an amount granted within the framework of an affected project: automobile, motorbike, leisure, work, etc. In practice, it is a loan repayable over a fixed and predefined period which makes it possible to finance a determined acquisition. As soon as the lending organization gives its agreement and after expiration of the legal withdrawal period of 14 days, the sum is paid in one installment to the account of the borrower who can dispose of it for the purpose of making the purchase for which the credit has been extended.
What are the amounts involved?
In the interest of the borrowers, the financial organizations offer an amount depending on the project to be financed: new car, used car, work, leisure, etc. Repayments are made monthly, according to a predefined fixed monthly payment over a period chosen when the loan is taken out with the financial institution. These monthly payments include the reimbursement of capital, interest, as well as optional insurance. It is sometimes possible to repay your classic payday loan in advance free of charge up to $ 21,500. Beyond this amount, fees are generally applied.
The cost of a payday loan?
The interest rate or TEG (overall effective rate) is said to be fixed because it cannot be modified by the organization according to the key rate of the central bank. It is defined during the subscription and will remain fixed for the entire duration of the loan. The total cost of the loan is known when the payday loan is taken out. It depends on the amount borrowed, the duration of repayment of the credit chosen, the TEG and the application fees.
Expert advice: It is important to define your need well because the payday loan loses part of its advantages when it becomes “plural”. Indeed, the borrower who subscribes several, will have to pay several times the costs. In addition, he risks obtaining a lower rate for a larger loan than for several “small” payday loans.