Payday loans Ontario are becoming popular every year as more and more people gain awareness about their many advantages. In case you do not have complete information about payday loans ontario
, here are some few frequently asked questions that would be of great help.
Payday loans Ontario – Asked questions frequently
1. What are payday loans?
Payday loans Ontario are short term loans provided in order to help a borrower solve emergency financial needs and are supposed to be paid by the next pay day. The loan amount is either provided through in store pickup or through bank deposit. Payday loans are not a means for solving long term financial problems.
2. How are payday loans helpful?
Every year over 2 million Canadians take advantage of payday loans Ontario in order to help solve their financial emergencies till their next pay check arrives. Easy availability and fast processing are the biggest advantages that payday loans have to offer.
3. Can I have multiple loans?
No. While there is no limit on the number of times you can obtain a payday loan, you can definitely not obtain two payday loans together. At any given time, you can have only one outstanding loan. Payday loans Ontario are meant to bridge the gap between two paydays and not for helping you solve any financial crisis.
4. What are the eligibility criteria for obtaining a payday loan?
The eligibility criteria are very simple and are very easy to fulfill. You should have a steady source of income, active chequing account, government issued photo ID card, active phone number and a valid email address. In addition, you should be a Canadian citizen and above 18 years of age. Your credit history has no impact in deciding your eligibility for receiving a payday loan.
5. How much can I borrow through a payday loan?
Your monthly income is the most important factor in deciding the amount you can be loaned. In general cases, a payday loan ranges from $100 to $1000. This can go up to $1500 in exceptional cases. You should always try to apply for the minimum possible amount in order to reduce the loan burden on your next month’s budget.
6. How do I apply for a payday loan?
Payday loans Ontario can be applied in two different ways, online application and in store application. Online application is the most popular method of application because of the convenience it offers. You just have to fill a simple online form and provide scanned copies of all the required documents. Once you have submitted the application form, it would be processed and an approval would be provided to you through the email address provided in the application. This approval would also contain the terms and conditions of the loan along with associated fees, interest rate and the repayment date. If you are satisfied with the mentioned terms and conditions, you just have to provide your electronic signature giving your consent. In store applications also have the same procedure, the only difference is that all formalities, including approval and signatures are carried out at a physical store instead of online.
7. How fast can I get a loan?
Payday loans are not like typical bank loans that usually take 15 to 25 days for processing. Payday loans are generally processed and deposited to your bank account within one to two business days of your application. In case you are in a more urgent need, you should visit a payday loan store instead of applying online. In store loans are generally processed and handed over to you within a couple of hours.
8. What if I can’t make a payment on time?
Payday loans are given with a premise that they would be repaid by the next payday along with the associated interest and any other fees or charges. This typically gives you about 5 to 25 days to repay the loan. In case you feel that you would not be able to pay the entire amount by the due date, you should contact the lender at least 2 days before the due date. The lender would extend the date for repayment but there would be additional interest rate and possibly additional processing fee as well.