The payday loan how does it work and who can claim it?

The payday loan how does it work and who can claim it?

It is possible to apply for a payday loan online on the website of the credit agency, by phone or directly in an agency. If the organization provides a positive policy response, the borrower receives a prior offer of credit to complete and sign.

He must then return this document with all the required supporting documents, including a copy of the identity card, a proof of address, a bank account statement, proof of income, etc. From the signing of the credit agreement, the borrower has a two-week cooling-off period.

Be careful, before applying for a payday loan, you must be sure you can repay it.

Indeed, borrowing money costs money. This leads to monthly payments with a rate of interest that it is imperative to be able to insure, on pain of having problems.

Before any request, it is necessary to check your repayment capacity according to your income and the possible credits already in progress.

Anyone can apply for credit. It is the bank or lending agency that decides whether or not the loan is granted. The acceptance of the credit is essentially based on the borrower’s income and therefore his ability to repay.

Amount and rate of the payday loan

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The amount of a payday loan can range from a few hundred euros only to 75,000 euros. The amount borrowed by the consumer is defined by the lender according to the needs of the borrower and its repayment capacity.

The payday loan is also subject to constraints on the repayment period, usually between 4 and 84 months.

As for the interest rate, it must be known that it is not revisable and that it depends on the duration and the amount of the loan. The longer the repayment period of the payday loan, the higher the interest rate.

Conversely, if the borrower chooses to pay larger monthly payments and therefore over a shorter period, then his credit will be less expensive.

Namely that the interest rate will also decrease depending on the total amount of the loan. A payday loan of less than 5000 euros is often offered at a higher rate than a larger loan.