Most – if not all – financial products exist to assist customers in one way or another. It is but rational that they do – otherwise, why else would an individual avail of a particular financial product? Think about it, an insurance policy for example. This product is something that will benefit the individual in case something happens. A personal loan works much the same way. Same thing with all other kinds of loans. Of course, while the individual availing of the financial product gains some benefit from it, the entity selling the product also stands to gain. They do this by charging fees and interest. It is much like a symbiotic relationship.
Payday loans are no different. They exist in order to provide for specific needs of certain individuals. If, for example, a person finds himself short of cash before his next payday, he can avail of a payday loan to see him through. Or perhaps, a person has a very urgent need to take care of and his money – from whatever source – is not due till the next week or so. A payday loan is perfect to meet this kind of need.
Most anyone in the USA can avail of a payday loan. The requirements are very basic and not hard to meet. First of all, a potential borrower must be a resident or a citizen of the USA. Furthermore, he has to be of legal age – at least 18 years old. These two requirements are non-negotiable and must be met for all payday loan lenders. Another important requirement is that the potential borrower must have a regular source of income. Most of the time, this is in the form of a stable job. That is actually where the term payday loan comes from – the borrower uses the money from his next payday as the guarantee that he will have money to pay back the payday loan. In other cases, if the borrower has his own business or is self-employed, he can also use papers proving that he has an income. Some payday loan lenders add on the requirement that the borrower should have been with his current job for at least 3 months or so. On the part of the payday loan lender, this adds assurance that the borrower will still have the job long enough to pay back the payday loan.
A borrower must also have a current bank account in order to facilitate the transaction. These days, payday loan providers operate online. They have done so in order to make the whole process faster, easier, and more affordable. As such, transactions are made electronically. The funds are transferred to the bank account that the borrower has specified. Payment of the loan can also be done electronically, using the bank of choice.
As you can see, a payday loan is a very efficient way of looking for financial assistance when one needs it the most. With the way the process has been streamlined, the assistance comes quickly and without too many glitches.