To lead a good life one needs money. It is a fact that money is indispensable for living. Almost all of us sometimes fall short of cash and wonder what should be done. Sometimes the monthly expenditure soars high due to one reason or the other and other essential things are left. In the middle of the month there can be visit paid by your parents after a long time. So you want to take them to places and eat out, you want to do all this as a gesture of gratitude. Then you realize you are not left with enough that can pull you through the month. The first thing that comes to mind in such a situation is Payday Loan.
Payday Loan It is a small dollar, short term loan which carries high interest with it.
- The loan has to be paid within a short period and the amount to be paid back includes the rate of interest along with the fee in addition to the money borrowed.
- Any American citizen of at least 18 years of age and with regular income of at least $1,000 can apply for the loan. One just needs to have account number, valid phone number and valid address.
payday loans in ct
How to apply?
- You can apply in person by visiting the lending store or it can be applied online too.
- When you visit the store you are required to fill the form in which certain personal information is required to be shared. Then there is some information regarding the employment that has to be shared. If all that you have filled is found to be correct. Then you are required to give a post -dated check, with the amount entered in it. The amount will be the borrowed money plus the sum interest and the fee of the lender. That is it. It is simple. With this the money gets transferred in your account. It is simple. It does not include seeking appointments with officials of bank just to ask if it is possible to get loan. The traditional loan system takes a lot of time.
- Online advance cash is all the more You can avail it from anywhere and at any time. As the advance cash is mostly availed at the time of emergency so most of the online lenders provide 24X7 service. You can even avail it while eating out at a restaurant. What you require is a smart phone and you must be an American citizen. The cash advance is just a click away. You are required to fill the personal and professional information and if all is found to be correct then you are asked to share your payday account number so that the due amount is withdrawn from the payday account on the day of the pay.
Why Payday is so popular?
- Speedy Cash – To keep up with the fast paced generation, Guaranteed payday loans lenders have also paced up and try to provide money at the earliest within a few hours after the verification and other formalities are complete.
No Lengthy Documentation
- Lengthy documentation is not involved. What is required is simple information to be filled in the form.
No Collateral Needed
- Many personal loans some valuable to be mortgaged but in payday loan , no such collateral required. Mortgaging can be risky, suppose you took loan against your car and due to some reason you could not pay it back on the due date m so the car is taken away by the lender. Payday borrowing does not involve any risk.
Laws regarding Payday in Connecticut
- Different states have different legislations regarding payday loans, Some states have actually banned it, In Connecticut , it is not banned but under regulation. The rate of interest is capped . The federal law has capped lending to military personnel at 36% as APR .
Payday Loan in Connecticut
- The small loan law and check casher law tighten the noose on Payday lenders. Payday loan is explicitly not banned. It is prevalent under different names.
Small Loan Law
- Only a licensed person can run this business of loan lending and he needs to abide by the rules.
Maximum amount: $15,00 with rate of interest greater than 12% per year.
- The interest rate depends on if it is open end loan or a closed end. On open end loan the licensed person can charge 19.8%. On closed end loan, the rate of interest varies. Depending on the time period for which the loan has been taken.
- So the small cash loan is allowed with capped interest .
- interest rate that a licensed person may charge depends on whether the loan is an open-end loan or close-end loan. On open-end loans, a licensed person can charge 19.8%. For closed-end loans the actual interest rates vary, depending on the length of the loan, but are much lower than typical rates on payday loans. The law allows the following charges on closed-end loans:
- The small loan law prohibits the pay to be kept as security
Check Casher Law
- License is mandatory for check cashing business
- In this 12% is the usury limit and it applies to all who take loan under this in the state.