No Fax Payday Loans

Payday loans are extremely short-term loans given by private lenders to employees of any organization. Usually, these loans are given for a fortnight or so. The interest rates or fees or finance charges that are applicable on this type of loan are rather high. Generally the lender may collect interest that may be anywhere between 15 and 30 percent of the loan amount. Apart from this, the lender also requires the employee seeking such loans to furnish personal information and documents. In the US, the person seeking such loan has to furnish pay stubs for a couple of months immediately preceding the loan request. Private lenders who run such lending stores give these loans.

For discharging the loan, the borrower issues a cheque that is post dated. On receiving the pay, the borrower approaches the store with the money, and collects back the cheque. If the borrower fails to do so, the lender is at liberty to deposit the cheque in the bank. If the cheque is dishonored, the borrower incurs fees for dishonored cheque apart from additional penal interest from the lender.

Payday loans can also be taken online. Such lenders send emails offering payday loans. Online applications can be filled, and faxed across. Application contains the usual columns for personal information, such as the name of the borrower, residential address, age of the borrower, employer's name, monthly income details, etc. Payday loan lenders also expect the borrower to furnish copies of bank statements, social security number, all bank account numbers, etc. By faxing the all this information, along with fax copy of the cheque for the specified amount, the borrower can avail such loans. Lender sends the monies directly into borrower's bank account. The fees/interest/finance charges, as the case may be, is withdrawn by the lender through the same bank. The entire transaction goes through electronic media when payday loans are taken online.

There are payday loan providers who do not have such stringent rules. Since faxing so much information is time consuming, these lenders offer what is known as no fax payday loan. Interest rates or fees on such no fax payday loans may be charged at the same rate or these charges may even be higher. Many States in the United States have come up with legislations against this type of loan. Some have tried to provide some relief to the borrowers through National Trade Association. Any such relief is in form of revised repayment plan.