Payday loan- an immediate financial help.
Not all problems can be predicted in day-to-day life, especially the financial ones.
Money has become the most basic component that an individual needs to survive. And problems like health issues, unexpected bills or unexpected trips have to be dealt with money itself.
During these unexpected problems, one will not have time to bank, apply for the loan, wait for the verification and then borrow the money.
This is when you need, a payday loan or a quick loan.Pikavippikone.fi has lenders that can lend money in no time with certain conditions followed.
If you are borrowing a payday loan, then you must be aware of all the costsm that are associated with the payday loan. Having a steady income is important, and without this, you won’t be granted the loan. As payday loans are of timely help, these have got a few strict rules and regulations too. High-Interest rate is one thing about the payday loan that most of the borrowers complain about. We see that the interest rates charged on the payday loans would be 600%,700% or 900%. This sounds crazy. But this is how you are charged when you borrow a payday loan. And it is 100% legal.
This is how it works-
You borrow a 1000 Euros this Monday from a quick loan lender, and your payday is next Monday.The interest rate on 1000 Euros would be 600%. On your payday, while repaying, along with 1000 Euros, you will be asked to pay 100 Euros as the interest. That is 10% of your loan amount. In total, you will be paying 1100 Euros.
When lenders quote 600% as the interest rate, it is supposed to be the Annual Percentage Rate(APR). The interest rate, per week, would be 10%.
Most of the borrowers are misled with high percentage rates. Hence it is important for the borrowers to understand, how the payday loan works.
Payday loans are not meant for managing your finances every month. They are supposed to be borrowed only at the time of a financial emergency.
Payday loans are designed such that, it should benefit both the borrower and the lender.