What is a free payday loan?
A free payday loan is an interest-free loan granted to first time customers as long as they are able to repay the loan amount in full on the payday following the release of the loan. The loaned amount is charged against the borrower’s paycheck. Interest charges apply on the succeeding loans.
How much is the interest charged on the loan?
Interest rate varies, depending on the amount of loan and the agreement or considerations set by payday lenders. On the average, though, for every $100 loan amount borrowed, you will be charged anywhere in the range of $10-$30.
What is the term of payment?
The term of payment is two weeks from the time the loan amount was granted or released, or the next payday after the loan release.
What are the requirements to avail the free payday loan?
There are no requirements other than your paycheck and an accomplished prescribed application form. In order to qualify, though, you must be of legal age, at least 18 years old and above, and you must be employed with steady income.
Where can I apply?
There are two ways to apply for a free payday loan. One is to submit your application online where your application can get approve in a matter of 10-15 minutes. Another way is to visit your nearest local payday lending company.
What are the advantages of applying online?
There are many advantages when you submit your application online. Among these are: (1) You get your applied loan amount faster; (2) No need for queuing, or waiting for a longer time before your transaction is processed; (3) Immediate approval of loan, so you get you cash when it matters the most.
How many times can one avail of the free payday loan?
There is no limit as to the number of times that you can avail the loan. You just have to remember the following points: (1) the loan is free of interest only during your initial loan; after which interest rate apply; (2) you must be able to repay, in full, the amount you have loaned at the payday following its release.
However, if due to unavoidable circumstances, you are not able to repay the full loan amount on the appointed time, then you can arrange with your payday lender for an extension of repayment. Usually, lenders will impose additional higher charge until you have settled the amount in full. You can extend the loan repayment up to a maximum of five times.
Are there any restrictions to the loan purpose?
There are no restrictions as to the purposes by which the loan is availed. As long as you are eligible, you will receive your cash instantly no matter where you are going to use the cash for.
Typically, cash availed from a free payday loan is used for the following purposes: (1) to cover emergency expenses; (2) home small repairs and maintenance; (3) car repairs; (4) medical expenses; (5) school expenses; (6) budgetary constraints; (7) repay other loans incurred; (7) cover home bills such as phone, electricity, water, etc. ; and (8) other urgent miscellaneous unforeseen expenses.
Read more on getting that free payday loan: Personal Finance for Dummies by Eric Tyson.