mortagesandforeclosures

by Rose Martin

An online payday loan is a short term loan that is advanced to the borrower who is in need of funds between pay days. The interest rates typically range between 15-30 percent. The term of the loan is usually two weeks in most cases, though it could be extended upon request.

There are some jurisdictions that have banned such loans and forbid lenders from servicing their residents. Some people feel that the charges that are levied on these loans, even for the short duration, have a draining effect on low income groups. In some cases, payday loans can be detrimental when used as a long term financial solution, since that is not what payday loans are intended for.

The good thing is that, the term of the loan invariably is around two weeks and longer term loans are usually not given out, though some do allow up to 30 days. The loans are also known as cash advances because they literally resemble an advance against the salary.

Some lenders have an affinity to online pay day loans in that they promise decent returns on short term investments for the lender. The fees and charges for a 100 USD loan might amount to 15 dollars to 30 dollars and have to be paid back in 2 weeks time. Before loaning the lender might require the borrower to show proof of salary or a regular source of income.

Some lenders also ask for a post dated check to be made out to them by the borrower for the amount of the loan plus interest and charges which they can cash if the borrower fails to make the repayment on the stipulated date. There is a danger that the check might bounce if sufficient funds are not there in the borrower's checking account. Most payday loan lenders offer extensions of the loan due date so that these issues can be avoided whenever possible.

With the current economy, many people are in search of short term financial solutions. There are an unlimited number of unforeseen financial emergencies that can push a person into a corner somewhere in the middle of the month when they are the most cash strapped. These people can seek out an online payday lender and quickly apply for a loan.

Getting a traditional long-term loan is not as easy as one might think. Even if you have proof of steady income and bank statements that show that you earn enough, its your spending ways that would be of interest to the money lender. The process involves filling up applications, providing copies of documents that have been approved, waiting in queues and at the end of all that trouble, your loan might not even be sanctioned. There is however another option that you can explore called online payday loans.

Many payday lenders are now available online which make finding a lender much easier. Borrowers usually are spared the rigmarole of going through numerous forms, documentation, and notaries. Borrowers simply have to visit the website and apply online for a loan. Many online lenders only require one or two supporting documents that can faxed or emailed from the comfort of one's home. The loan is then approved the same day and the loan funds can be found in the customers bank account by the next morning.

About the Author:

Rose Martin writes for the Get Cash 911 blog, a leading source for saving money tips and cash payday loan information. Visit us for a fast, affordable online payday loan.

Get all the information and photos:: http://mortgagewide.info/an-online-payday-loan-to-the-rescue/