If you are looking for a quick and easy payday loan, you will be in for a rude awakening. These days, even people with a bank account cannot get payday loans. The reason is that banks do not want their own customers to take advantage of these loans.
Banks have gotten out of the business of making such payday loans because they know how easy they make it for their competitors. No one can explain how lenders and their clients interact. But it is all too obvious that the cost of going to the bank is way too high when compared to the cost of payday loans.
Borrowers are regularly tricked into believing that the monthly installments for the loan are far less than the usual. But as soon as the payments come, borrowers realize that the lender has made huge interest charges on the money borrowed. There is hardly any way for a borrower to escape these charges.
While it may seem that banks are helping the borrowers by charging a high rate of interest on the borrowed amount, there is little truth in this. Banks charge a high rate of interest because they are not required to report the rates to the government. It is the financial institutions that report these rates to the government.
The federal government does not allow banks to charge more than 30% as a fee for quick and easy payday loans. And a sizable part of the lenders’ annual income comes from fees charged to customers. This is why banks do not charge a very low rate of interest on the loans they provide.
Today’s economy is in the midst of a short-term financial crisis. People are suffering from financial hardships, and they are looking for ways to take care of their money problems. But since it is a short-term crisis, most lenders are not extending loans. So borrowers will have to search for other sources of instant funds.
Short-term loans are easier to obtain, and they are much more convenient for borrowers. But in order to get a loan, they need to apply for a loan. However, once the application is approved, the borrower will have to pay an outstanding amount every month.
In the past, fast cash loans were often used by people who could not take time off from their day jobs to apply for other types of loans. These loans are no longer available. The reason is that the government has made it impossible for banks to charge more than 30% on the amount of loan.
In order to keep their competition down, some money lenders have decided to tie up with other lenders to offer fast cash loans. They do not charge high rates of interest and require little documentation to prove the borrower’s income. Some people do not realize that by getting such loans, they are doing exactly what the bank is doing when they do not issue a quick and easy payday loan.
Their main goal is to protect their profit margins by only issuing loans to people who really need the money and in an urgent need. These days, banks are giving money to people who are struggling financially. This is in keeping with the new business model that requires only one profit center – interest on the loans and salaries of bank employees.
To get a quick cash injection. But they are designed to give people the benefit of immediate access to financial help when needed. Once the borrower gets a payday loan, he or she can stop worrying about paying back the money borrowed.
Getting such a loan has become far easier because the government now allows only lenders to issue loans, not banks. The only real difference between these loans and banks is that the latter always require collateral. applicants are now required to prove their income by showing receipts or tax returns.