A same day payday loan is a short-term cash loan which is generally provided within 24 hours of application. To get a same day payday loan, you will most likely need to provide copies of documents such as an identification card, bank statements, and paycheck stubs. In most cases, you will also be required to submit your bank account details or a check in the amount which will be due at the end of the loan term. It should be noted that payday loans generally involve fees and extremely high interest rates, and most financial experts therefore caution that alternative options should be explored before applying for this type of loan.
Generally, a same day payday loan can be granted only for a relatively small amount of money. In US states where payday loans are legal, for instance, the maximum loan amount generally cannot exceed $1,000 US Dollars (USD). Further, as a payday loan is intended to be repaid with the borrower’s next paycheck, the loan term is usually fairly short, ranging from two weeks to one month.
To get a same day payday loan, you can generally either go to a payday loan store in person or visit a payday loan website. If you visit a store in person and your application is accepted, you may receive cash on the spot. Should you apply for a loan through an Internet lender, the loan amount will usually be transferred into your bank account within 24 hours.
At the time of application, you will need to provide documentation verifying your identity as well as evidence that you have a bank account which is in good standing and that you are paid regularly. If you visit a loan store in person, you can simply give these documents to a store employee. Should you opt to use a payday loan website, you will likely need to fax or email the items.
In addition to these documents, you will also need to provide a form of payment in the amount of the loan plus all fees and interest charges due at the end of the agreed-upon loan term. You might provide a check, or you might submit your bank account details so that an electronic transfer can be arranged. The lender will not immediately cash this check or deduct the loan amount from your account. Rather, the form of payment is provided as collateral.
If your loan application is accepted, you will be expected to return to the lender’s shop or website on the final day of the loan term to repay the loan plus all fees, at which point the check you provided will be returned to you. Should you fail to return, the lender will either cash the check or order an electronic transfer for the loan amount plus fees using the bank details you provided. If you return to the lender but cannot repay the loan, you may be able to renew the loan, usually for a significant additional fee.
It should be noted that same day payday loans are generally granted at extremely high interest rates, causing many of those who take them to become trapped in a cycle in which they must apply for new loans to repay past ones. In addition, borrowers using Internet-based lenders may compromise the security of their financial details by faxing or emailing banking information. Therefore, most financial experts suggest that every possible alternative should be explored before applying for a payday loan.