Let us assume you to be a salaried person and you have run out of money before the due date for your salary? The emergency need for money truly may arise for several purposes, meeting out your doctor’s bill, payment to milkman, electricity bill or the need may also arise during travel. What are your options for money available? When you are at your home, you can always look to your friends, relatives but what if they also are short of money to lend, what if you are in travel?
vipit come to your rescue. Traditionally, you can approach a Payday Loan retail store wherein you fill up the form along with a post dated cheque to the amount you need plus some stipulated fees/charges. You instantly receive the money you require. The maturity date for the loan repayment is your payday i.e., the day when you receive your salary from your employer. Your obligation is go to the retail store on the payday and return the money you borrowed along with charges/fees, otherwise the lender is at liberty to redeem cheque and if it bounces, you would be legally responsible to face the consequences.
Online models of Payday loans have been developed in order to ensure instant access to short term borrowings by salaries class in the USA. In this case, funds are transferred through direct deposit in borrower’s bank account and withdrawal of amount with charges is also on Payday electronically from your bank account.
Low income communities mostly opt for Payday loans. Sometimes, Payday loans are expensive with exorbitant interest rates, however their advantage is that they are small but unsecured loans and you can get them without much of documentation or formalities. The Lender is also at risk in collection of these loans. However, due to its advantages the Payday loans have emerged as a winner and have become popular in the USA, particularly among lower income strata.