Instant payday loan payments – how does it look in practice?


The wealth of the average family still leaves a lot to be desired. The prices of services and products necessary for life are systematically rising, and our wallets do not always keep up with the day-to-day expenses. Planning a home budget can be extremely difficult sometimes and it is not easy to talk about saving.

The implementation of far-reaching plans and the realization of dreams often involves the need to fund your home “piggy bank”. Motivation to apply for additional funds in financial institutions may also be unforeseen random events.

Bank loan or payday installment?

Bank loan or payday installment?

The banking procedures necessary to conclude credit agreements often deter intricacy and complexity. Acquiring the necessary certificates, verifying income and completing documentation related to applying for a bank loan are associated with (often long) waiting times for completing all formalities. Meeting the necessary requirements also forces many visits to the lender’s office. Legal regulations to which banking institutions are subject oblige to thoroughly trace the borrower’s creditworthiness.

Any adverse verification may become a reason for rejecting an application for cash at the bank. Non-bank loan companies can be a convenient solution to such situations. The activities of these institutions are governed by the provisions of the Civil Code and, like banks, are subject to the supervision of the Financial Supervision Authority. However, they do not have to comply with the same procedural restrictions, and their regulations are more liberal about the client’s creditworthiness. For this reason, products from the offer of loan companies are enjoying increasing popularity. One of them is payday installment, which in its form resembles a loan taken from a bank.


Payday loan and installment payday – how do they differ?

Payday loan and installment payday - how do they differ?

The term payday is called a short-term loan offered by non-bank financial institutions. It is usually quick cash help provided on a simple, transparent basis, whose one-off, total repayment is required within the time specified in the contract. The maturity of such a commitment is usually around 30 – 60 days, which significantly limits the amount of amounts that can be obtained. In practice, this means sums not exceeding several thousand dollars. It looks a little different when concluding an installment contract. The difference is in the form of repayment of the liability incurred and the ceiling of the amount of debt offered. Contract conclusion procedures are not complicated. It is becoming common to conclude such contracts without leaving home and using online applications.

What are the conditions for paying the installment payday loan?

What are the conditions for paying the installment payday loan?

The rules for repayment of installments should be described in detail in the contract. Usually, this applies to the division of debt into equal parts that are due within a certain period of time. The installment payment schedule should clearly specify:

  • installment amount
  • number of installments payable
  • repayment frequency
  • their due date
  • other repayment terms

Repayment of the installment payday loan depends on the amount of the loan granted. We can talk here about amounts of up to several tens of thousands of dollars. Therefore, the amount and number of installments proposed for repayment and the frequency of their payment may vary. For smaller loans, a weekly payment method is often practiced. Higher liabilities are usually covered by the monthly installment schedule. The due date of subsequent installments can be negotiated at the time of signing the application. Loan offers are flexible and adjust the repayment dates of subsequent installments to the customer’s convenience. When analyzing the installment payday contract, you should carefully look at the other conditions regarding its repayment. They specify, among others, the amount of penalties imposed for the borrower’s delay.

Loss of financial liquidity to pay installments can become a cause of considerable trouble. The company’s experienced team of loan brokers offers effective help in getting out of the debt loop. Comprehensive knowledge and possibilities of negotiating credit agreements with employees of financial institutions at the decision-making level become invaluable support for a troubled borrower.

What types of interest rates on a consumer loan are there?

The types of interest rates on a consumer loan that you have to consider are: the nominal interest rate, the conventional maximum rate and the effective rate. The nominal is the return obtained considering only the main capital. Conventional is the highest percentage you can get credit from. And the effective rate is the percentage that would be applied to an amount of money in a certain period.

How does each one of the types of interest rates influence a consumer credit?

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Nominal interest rate

The nominal interest rate is the value you have to pay for not having the money you need. This cost is agreed based on a percentage that, considering the term and the capital, will report a benefit on the initial amount with simple capitalization. In addition, it does not include administrative expenses or commissions.

Its value is agreed by each financial institution independently, and is usually linked to the country’s economic cycle and reference indicators. You should also consider the time period. The nominal interest rate can be daily, weekly, quarterly, etc. It does not have a standard reference period, and since it does not include expenses, it is impossible to adequately compare consumer loans from different entities with this interest rate.

Conventional maximum rate

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This rate applies to consumer loans that are less than 200 UF and that cover operations over 90 days. It is the maximum percentage that a financial entity can charge as a rate for operations under the aforementioned conditions.

You can always consult the conventional maxim on the website of the Superintendency of Banks and Financial Institutions, which is who controls this interest.

Effective rate

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Depending on the financial institution, the effective rate may appear within the interest rate types in a consumer loan, on a monthly or annual basis. The effective rate provides a more accurate data but it is not exact either, although in its calculation it includes more expenses than the nominal one, it does not include all. For example, notaries, taxes, expenses for transfer of funds, expenses for insurance or guarantees, among others.

We agree that with all this information it is easier to know which credit is suitable for you or not, but it would be best if you compare the CAE or equivalent annual charge, which is the only number that includes all charges to one year for a credit of consumption. If you have already analyzed the types of interest rates on a consumer loan, enter our comparator and find the best option for you.

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Quick credits from $ 500 to $ 80,000.


Advantages of applying for a personal loan

Advantages of applying for a personal loan

The last year has been a good year for the ‘online’ personal loans or ‘online’ personal loans sector, since the number of transactions within this sector grew compared to the previous year, especially in regions such as Barcelona and Madrid. But what are online personal loans?

At the beginning of the year 2000, so-called fast credits were born in Spain, which consisted of a private person, or bank, lending a quantity of money, not very large, to another person for a certain time. This first idea was growing and consolidating within the Spanish ‘online’ market. There are more and more private entities that offer this service through the network, and not physically, since the Internet has completely transformed the financial sector in Spain and in the rest of the world.

These are small money personal loans that are used to meet unexpected expenses, a kind of urgent money. They are requested online, and because they are easy to request, and because you do not have to enter too much personal information, more and more people are opting for this type of financing.

In addition, once the personal loan is approved, it can take just a few minutes to obtain the money in the bank account indicated when requesting the loan.

But what are the advantages that have led to the growth of personal loans ?

But what are the advantages that have led to the growth of personal loans ?

Although the amounts are usually small, these are personal loans that can be requested very easily and comfortably, one of the reasons why Internet users prefer this option instead of approaching their bank.

Almost everyone can request one of these credits. This is surely one of the most important factors for the growth of this type of financing. To request this relatively small amount of money, you do not need to present any type of payroll or guarantee. A factor that helps people opt for this option.

Although it is a relatively new trend, the growth of the network and of the users of it, is linked to the increase and consolidation of this sector. The more people connected the more chances that citizens who request personal loans online will increase. In addition there are different indicators that make us think that the sector will continue to boom. There is recent news that encourages this growth.

This is the judgment of the Court of Justice of the European Union that obliges Spanish banks to return what is overcharged for the floor clauses from their application. After the judgment of the Court of Justice of the European Union, according to some experts, it could lead banks to put new conditions on loans that allow them to recover the money from the fine. That is, they could ask for more by lending money to citizens.

The measure will cost entities more than 3,000 million USD and therefore will directly affect their economic balances. For this reason, it is not surprising that in order to recover this money, banks change the conditions of their financial products, among which are personal loans. A measure that could lead Spaniards to stop using traditional financial institutions if money is needed, especially if it is not a very high amount.

Instead, it seems that citizens could increasingly opt for the Internet. Given the aforementioned advantages and obstacles that would be encountered with traditional banking, it seems that the online loan sector will continue to grow.

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