Instantly Available 24/7 Payday Loans or Personal Loans in Canada
It's not simple to deal with financial crunches appear unexpectedly. Especially, when you are least prepared for it. No matter what, you have to face off and pay the necessary cash to uncertain circumstances turn of expenditures. If applying for online payday loans no credit check instant approval Canada is what hovering around in your mind, and then you have come to the right place. Continue reading to avail valuable information on such online instant cash loans Canada. Before getting deep into it. Let's have a small overview of this payday advance monetary aid.
"29.6% of Canadian families are debt-free. Survey of Financial Security Canada: 2016"
What is a Payday Loan?
Also referred to as cash advance loan, it is meant to offer you short term cash against your next paycheque. You will get a matter of 2 weeks to repay the loan amount after getting an agreement and let your next payday be dedicated towards loan repayment.
Now, you must be wondering what is to do with loan agreement. For your information, we will explain few important things about payday loan agreement.
Payday Loan Agreements
This is an agreement between payday lender and the borrower that includes the following content in it:
- Complete information about borrower's rights with subject to utilize the loan amount for any sort of personal expenditure.
- A table on the very first page of agreement displaying the total cost of borrowing.
- Cost of borrowing expressed as an annual percentage rate (ARP).
It is on the part of lender that the agreement should be clear and understandable. And, for you as a borrower, need to understand every single detail of the agreement before signing and sending it. Read more.
Few Restrictions on Agreement
There are few restrictions mentioned in the payday loans in Canada offers that are as follows:
- Loan lender cannot charge more than $15 per $100 borrowed, that must include all the fees and charges directly or indirectly connected to the payday loan.
- No need to provide any additional offer or goods and services in connection with the payday loan agreement.
- Lender cannot enter into the loan agreement if the advance is more than 50% of the borrower's net income per loan.
- Lender cannot enter into the loan agreement that ends before the borrower is next scheduled to receive income.
- Cannot extend the loan agreement past the original termination date.
- Lender cannot enter into an agreement with the borrower who already has an outstanding payday loan running.
- Lender cannot use the personal identifiable information of the borrower available in the agreement for any other purpose.
- Also, once the borrower signed the copy of the agreement, the lender needs to provide the signed copy immediately to them. Read more
Understanding the Cost of Availing Payday Loan
You must be aware of the inclusions present in the payday loan agreement and restrictions imposed on lenders. Next is to understand the cost of borrowing instant cash advances from online lenders.
It is a genuine fact that online payday loans instant approval in Canada can have substantially higher cost as compared to any other financial product like personal loans, credit card advance, instalment loans, or any other. The APR and interest rate is quite higher in such short term loans in Canada. To better understand this, take a look at the following few table.
|Average Personal Loan||Average Overdraft Protection in a Chequing Account||Average Credit Card Cash Advance||Average Payday Loan|
|Cost to Borrow $1000 for Two Weeks||$2.69||$7.30||$8.07||$210|
Source – Greedy Rates
As you can see the above, the interest charges are extremely on a higher side in payday loans. Keeping the interest rate aside, there also lies originating/processing fees included. Also, if there is a roll over means you cannot pay the loan amount within the specific period of two weeks, then for the extended period you have to pay late payment charges as the roll over fee.
Getting the Deep Understanding of Payday Loan Charges
There might be thought coming across your mind that should you really consider payday loans in Canada as an ideal fiscal option. Well, do not lose hope now. Get more information on this in terms of charges you will be paying ahead.
Let's take an example.
You have taken a loan of $300 for 2 weeks in the form of payday loan cash assistance. Now, over that 2-week period, you have to pay $45 as interest charges (i.e. $15 for every $100 borrowed), which works out to an APR of 390%. So, ultimately, you have to pay $345.
Now in case, you could not afford to gather $345 amount for loan repayment, then you will be charged with penalty. And, in the end you will pay $400. Even if you roll over the loan, the additional amount keeps on adding and letting you trapped in a debt cycle.
Source: Credit Canada
Debt-To-Income Ratios Canada
Best Tips to Pay off Payday Loans on Time
- It is a general tip that never borrows more than you need. If the loan you have applied for is more than you need, then you are going to pay higher interest rate than imaged. And, fail to repay the loan will have dire consequences of adding late payment fee and more interest charges.
- Do research good online payday loan companies that offer you good amount with transparent terms and conditions. Stay away from the companies who fake you with false promises of lower interest rate, no fees, no late payment charges, and all.
- Ask for the renewal of the loan. Find the private lender that offers the automatic feature of renewing the loan, if fail to repay on time.
- Better not to deal with overseas company offering payday loans in Canada. Terms and conditions of such company would be different from your own country's lenders.
- Check if your lender allows for a credit check before approving the loan. In most circumstances, credit check is not required to see the repaying capacity of the borrower. If you come across such lender then better to avoid the same.
If you are in search of ideal lender offering payday loans near me in Canada, then we are here to assist you in first understanding all the terms of loan and then apply for the same.
Payday Loans Frequently Asked Questions
Does Payday Loan Require Credit Score Check?
There are some lenders who follow the usual practice of checking the past credit background of borrowers before approving the loan. In normal circumstances, there is no such requirement to go under cumbersome credit check and get instant approval on the basis of your repaying capacity.
Is There Any Requirement of Security Against Payday Loan?
No, there is no such to submit anything as security or collateral. You can very well make out the fact that loan is offered for just 2 weeks only.
What will be Consequences of Not Repaying the Loan?
The only consequence you face is paying higher interest rate and late payment charges, if fail to repay the loan.