The payday loan is a flexible loan that allows you to get a sum of money that can support you in the realization of your projects. One of its undisputed advantages lies in the possibility of customizing both the amount of the installment and the duration of the loan. But let’s find out in detail what to do to request a payday loan: features, documents, requirements. Read more at http://www.sonotheque.net/offering-mortgage-life-insurance-the-easy-method/
Here is a guide to 8 points to help you understand and understand better, before going to the bank and requesting your payday loan.
- Definition. The payday loan is a loan that allows you to request a sum of money without having to justify the purpose of using it. The bank or credit institution grants the loan at a fixed rate, to be repaid according to a constant installment plan. Reimbursement of the loan can take place through a deduction from the current account or through postal bills. Choosing the solution of the payday loan you can receive the sum requested, personally, by crediting the current account.
- Requirements. The payday loan can be granted to employees, retirees, self-employed workers, artisans and entrepreneurs in possession of a regular paycheck, or who can produce a tax return or a pension slip. The person requesting it must be an Italian citizen, or a foreigner residing in Italy for at least 1 year, with an age between 18 and 70 years. It is also a fundamental requirement to have a good credit position: not to be a bad payer, not to protest and not be late in repaying the loans in progress. To request a payday loan that has the chance to be granted, it is also important that the amount is proportional to the income received. In case you are not in a position to prove it, you will need a guarantor.
- Amount and duration. Before requesting a payday loan, remember that you can choose the amount of your loan: from a minimum of € 200 up to a maximum of € 75,000. You can also defer the loan for a minimum of 1 year, up to a maximum of 120 months.
- The contract. When applying for a payday loan, consider that the contract contains all the necessary elements that are good to be specified. First of all the sum of money you intend to request and the interest rate applied. The amount of the installments and their maturity are as follows: the APR, ie the Annual Effective Annual Rate and any additional costs to be incurred.
- The APR and the TEGM. The first is the Global Effective Annual Rate and indicates the total cost of the loan requested, on an annual basis. The second is the Average Global Effective Rate, which is the average value of the rate applied by the bank to homogeneous categories of credit operations, in the second quarter before. Also these items are to be assessed before applying for your payday loan.
- Causes of rejection. Given that each bank or credit institution makes use of the right to establish its own criteria for the granting of a loan, when you are in a position to apply for a payday loan, it is good to know that you may encounter a refusal. In fact, from the documentation presented, one could deduce a limited repayment capacity, an over-indebtedness or a past from protested or bad payers. These factors could be causes of loan refusal.
- No refund. In the event that you were in the condition of not being able to repay the installments agreed upon in the contract, it is good to know that you will be charged with default interest with the consequent notification of the payday loan holder, to the credit protection bodies.
- Right of withdrawal. Finally, like any self-respecting contract, even the one relating to payday loans provides for the possibility of withdrawing. You can do this within 14 days from the closing of the contract, through a direct communication to the bank or to the paying agency, according to the modalities foreseen in the contract.