At times, when you need quick access to cash and cannot wait for the approval of personal loans in few days, then you can switch to guaranteed payday loans.
You might have heard about payday loans in Canada that are short term, collateral-free, and no credit check loans. Usually, employed professionals can apply for such instant cash loans against their next paycheque for a repaying cycle of two weeks.
In actual terms, it is not the same as always. As per different provinces of Canada, the loan amount might differ. It can start from $100 to $2000. And, sometimes even to $5000, if you like to borrow funds for a slightly longer period of time.
But one thing that is guaranteed is the loan approval against your paycheque. Lenders of guaranteed payday loans will not ask you for lengthy documentation and allow you to apply online by filling an application digitally. Also, you will not be undergoing a cumbersome credit check. It is because payday lenders do not report to the two important credit bureaus of Canada.
To understand, how it is guaranteed to get payday loans in Canada and make the most out of it. You need to understand few things in detail like how does it work, interest charges, borrowing cost, why it has such a high-interest rate, and what will be consequences of not repaying the loan on time.
So, let's get started.
How do guaranteed payday loans work?
Typically, there are different working stages of payday loans that are guaranteed for employed professionals.
#Stage 1: In this, as a borrower, you apply for a guaranteed payday loan online on the site of a reliable lender. You need to fill up personally identifiable information in the online loan application and then submit the same.
#Stage 2: Lenders will evaluate your loan application based on your economic background, how much money you earn, and what you have asked as a loan. In general circumstances, lenders guarantee the fact that you will get 50% of your net home pay amount as the loan amount that you will be asked to repay within 2 weeks to few months depending on the loan condition.
#Stage 3: Once the loan amount is finalized, the repayment period is discussed online, and then you will be asked to sign a contract from the lender's side for the automatic deduction of the loan amount from your next paycheque. This is the other way around of guaranteed payday loans. When lenders guaranteed you get instant funds, then you also have to provide them guaranteed to obtain loan money within a specific period of time automatically.
#Stage 4: Once everything falls in place between you and the lender, then get a guaranteed sum of cash deposited directly into your bank account.
What are guaranteed payday loans interest charges?
You have a guarantee to get an instant sum of cash once you meet all the criteria. On the other side, reliable lenders give you that same set of guaranteed in terms of charging the transparent interest charges.
For this, you need to look here to understand how interest on a payday loan is being charged.
In general, payday loan lenders disclose the rates they charged as Annual Percentage Rate (APR) which is a context in Canada. The interest charges are being decided by the provincial government in the particular province that is different from the other.
So, here we have few APR rates available belong to different provinces of Canada.
|Province||Maximum Charge Per $100 Loan||Annualized Percentage Rate for Payday Loans (Based on 2-week period)|
|Prince Edward Island||$15||391%|
To provide an example of how interest rates work on guaranteed payday loans, let's take an example. If you take a $200 loan amount with a loan fee of $30 (which is $15 charged for every $100 borrowed), then you have to repay the sum in 12 days and your APR would be 456.25%.
Defaulting on your guaranteed payday loans
Another thing guaranteed here is that you have to repay the loan amount at a given time limit. In case, you fail to do it in two-week of deadlines, then you will have a rollover on the loan. In this, your principle amount remains the same. However, you will be charged extra with financial charges plus an additional sum of the late payment fee.
To better understand this, let's take another example over here. If you have borrowed a total sum of $375 and your interest charges are calculated as a basis of $15 per $100 borrowed, along with finance charges of $56.25, then the total amount stands in front of you is $431.25.
If you have decided to roll over, then your new amount would be $495.94 that comes to a round figure of $500 which is more than what you have borrowed at first hand.
So, this is the amount which is rolled over and keeps on adding, if you fail to repay the same. Therefore, you have to guarantee the fact that you need to repay the loan amount well on time.
Payday Loans Frequently Asked Questions
Have a question? Find answers here with us.
Is payday a short term loan?
Yes, a payday loan is a short term category of loan which is offered for a basic repayment term of 2-week. Sometimes, the tenure can get extended depending on the loan amount borrowed.
What can fast money from payday loans be used for?
There is no such discrepancy on your part while spending a guaranteed payday loan amount. You can spend the money anywhere you like from paying pending bills, school fees of children, buying groceries, meeting medical expenditures, or it can be anything.
When will I receive the funds?
For any loan application that comes to the lender, it takes few hours of time for the evaluation. And, if all goes well with the application, then the loan will be approved instantly and you will get money on the same in your bank account.
What will happen if fail to repay the loan?
Rollover is the outcome if you fail to repay the loan on a specific date. However, you will be charged with a late payment fee and other financial charges that make your loan amount more than you have borrowed in the first place.
Main Cities Served in Yukon
We Provide Guaranteed Payday Loans Online Anytime 24/7 Among Others In The Following Cities:
- Watson Lake
- Haines Junction
- Mt. Lorne
- Ibex Valley
- Pelly Crossing