Typically payday loans are unsecured short term loans for a couple of $100 and are especially intended to help people out of an unexpected tight financial crisis. Of late such loans are becoming more popular and such payday loans in Canada are offered by both regulated private institutions and lenders apart from banks.
The concept of payday loans first appeared in Canada around the 90's when people wanted loans for small amount for a very short duration of time. And now this has grown into a very large industry in the country.
In Canada the amount a person can borrow is limited to about 40% of his paycheck. To be eligible for payday loans in Canada an individual has to be employed and possess a bank account and usually the term for a loan of this kind is between 14 to 30 days depending on the amount borrowed.
Generally the lending service, be it a bank or a private financier, does not request for credit checks from the borrower because such loans utilize the individual's next salary as a kind of security. This proves to be a Godsend to people who are in a tight spot especially if they have a bad credit history.
The best and simplest means of availing a payday loan is to use the internet to apply through an online service. Most lenders of loans in Canada have a website and approve of an individual's request with a few hours and once it has been processed, the money is electronically transferred into the borrower's account either by the end of the day or latest by the next working day. Such online services are very convenient when considering that one can request for a loan sitting at home.
When applying for a loan one has to ensure that the lender has been in business for some time and has a good and reliable reputation. The person has to ascertain that what ever information he submits will remain safe and secure.
Payday-loans services generally charge high rates of interest for these short term unsecured loans. One has to be wary of the lending institutions as many services offer multiple loans to the financially weaker customers who eventually find it difficult to pay back the loan, enabling many payday loan companies in Canada to make a pretty packet.
The criteria for an individual to obtain payday-loans in Canada are:
You have to be a Canadian citizen He must be over 18 years of age and his income should be at least $1000 periodically The individual's income must necessarily be directly deposited into a Canadian bank account
By and large payday loans in Canada are the simplest means of obtaining small amounts of money in an emergency. But one has to remember that such loans should be taken only when it is absolutely necessary and not to make any impulsive buying. As with any other kind of loan, payday loans can also have an impact on your financial state, so use caution and apply for one only when there is no other alternative.
