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How small can be your loan? (Busting myths)

Well, you do not usually get an extremely small amount of loan from banks, you avoid the long, time consuming procedure that undergoes when you file an application for personal loan to any bank or other financial institution. We are also afraid of rejection because of our bad credit score, and you know the bank will verify and scrutinize all necessary details possible, past credit check being one of the significant aspect. You anyway know that it's pointless to go to a bank for availing such small loan bad credit as your application will be rejected one way or the other. At this hour, you should opt for short- term loans that are available online. These online payday loans providers give you instant loans for bad credit in urgent situations and are a safe and convenient way to allow a customer to extend their buying power and help cover small, unplanned expenses.

How small can you borrow?

The range of short-term loans depends from lender to lender. Some advances range from $50 to $1,000 depending on your state of residence, and some range from $50- $25,000. But minimum amount is $50. In India there are very few payday loans direct lenders like moneyinminutes.in that ranges from Rs 5000 to Rs 1,00,000. The qualifications for these loans are typically less stringent than the conventional loans. In exchange for the cash, you need, the lenders charge a small fee. This fee along with the original amount borrowed is typically due on your next pay day.

Whether you borrow small amount of loan or big, there are many terms for this kind of credit - payday loans, check advance loans or post-dated cheque loans, you can get them from various number of sources. Whether you walk into a payday lender’s store or apply online, the process is same for borrowing small amount or big amount. You need to provide some of your personal and financial information, request a loan (secured by a check or your bank account debit authorization), pay a fee for the loan and receive the cash (or a deposit into your bank account). Several factors will determine how much you are eligible to borrow, but your past credit isn’t one of them.

Same day Payday loans can sometimes be very costly. The fees that is given along with loan amount depend on state laws, but the structure might be something like a $15 fee per $100 borrowed, and some states may have a cap on how high the fee can increase. Because the loans have such short terms and is done instantly, the cost of borrowing is generally very high. For example, a typical payday loan with a two-week term and a $15 per $100 fee has an annual percentage rate (APR) of nearly 400%, in America.

So even if you borrow a small loan, you should research and surf all the websites who are lending such services as these providers are direct loaner, the cost of the fee and interest rate depends on the discretionary basis. Hence, it is advisable to go through all the regulations that revolve around these services to have a solid idea about the procedures and the intricate matters involved. It is crucial that you repay emergency cash loans as early as possible. Many people get into trouble with these types of loans when they are unable to repay the debt in the specified time. If you are not being able to repay the loan at the end of the term, you will be charged expensive additional fees. It is very costly to be stuck in a same day loan cycle like a limbo and can lead to larger financial problems. The lender might sue you in court for not paying your debt. So repay your loan as soon as you get your next monthly salary and avoid such complications.

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