What is a Cash Loan?
Cash loans are a short term loan that is different than traditional loans offered by banks and other traditional lenders. These loans are utilized by people who want to cover their cash shortfall until the next payday. The loans are usually offered by niche lending companies that specialize in offering these kinds of loans.
Let's look at some of the basis of the cash loans, and find out how they are different from traditional loans in fulfilling financial requirements of the individuals.
Basics of Cash Loans
Cash loans, also known as payday loan, are short term loans with a typical duration of not more than two weeks. The loan amounts that the cash loan lender offer to the individuals is usually in the range of $100 to $1,000 depending on the limit imposed by the states laws where they operate.
Cash loan lenders charge different fees for obtaining the loan amount. The fee ranges from $15 to $30 dollars. Individuals may also be required to pay additional fees such as a late payment fee, bounce check fee, and a transaction fee that incurs in case there is insufficient amount in the bank when the loan becomes due.
The cash loan amount that the borrower can obtain depends on the gross income of the individual as well as the state statutes regarding cash loan limits. Also in most states borrowers are not allowed to obtain multiple cash loans at one time. The reason for all these restrictions is to ensure that borrowers do not take more loans that they can afford to repay.
Applying for a cash loan is relatively easier as compared to applying for a traditional loan. Lenders who have not so perfect credit history can also qualify for the cash loans. Moreover, the application process for obtaining the loan amount is also easy as the lender don't have to fill lengthy application form or submit a lot of documents to obtain the loan amount.
Disclaimer Notice: The article/blog is intended for informational purposes only. You should not make any financial decision based on the information provided in this article, and without consulting with a financial expert.