Payday loan is a very popular type of loan nowadays. The reason for its popularity is that it can be obtained easily and quickly and it has very low interest rates. Before applying for a payday loan, consider your financial situation and only take out a loan if you really need to.
Although the interest rate on a payday loan is low and the terms are favorable, it is only one loan that you will be able to repay if you are unable to repay it. Of course, there may be circumstances in everyone’s life when you need money fast and can’t borrow from anyone and have no emergency reserve. In this article we have collected everything you need to know about a payday loan.
If you pay attention to these, you certainly will not regret borrowing.
Usually people apply for a payday loan when they need a smaller amount quickly. A payday loan can be applied for from a few hundred thousand forints to 10 million forints. Usually 1-2 million HUF claims are typical, but there are also bigger loan applications. If you need a larger amount, you may want to take out a mortgage because it has a better interest rate. However, as in his name, the bank is asking for some kind of mortgage.
If you do not have sufficient collateral, you will definitely have a payday loan, as it does not require any collateral, even if the loan will be more expensive. There is no need to specify the purpose of the loan either for a mortgage or a payday loan, and the amount of the loan can be freely spent on anything.
In the absence of collateral for payday loans
Credit institutions take greater risks by lending and endeavor to insure themselves. Before giving the requested amount, they assess the debtor’s income, check how long they have been in employment (usually 3-6 months of continuous employment), and pay their bills on time.
The more secure the customer has the financial background, the more likely it is that he will receive the loan requested. You can even get a better loan.
It is important to know that anyone who receives a salary from a foreign employer can easily fall into the wall when applying for a payday loan. There are some credit institutions that do not lend in such cases because they believe that the debtor’s employment relationship cannot be properly controlled. When it comes to payday loans, financial institutions often impose stricter conditions on employment relationships in Hungary. Sometimes the debtor is expected to work for at least half or one year in his current job.
When applying for a payday loan, you also need some documents:
- photo ID
- address card
- Bank account statement
- certificate of income (issued by the employer or, in case of own company, by the NAV).
The bank may ask for other papers, but this is relatively rare. It is a good idea to consult with your credit institution in advance about exactly what documents are required to apply for a loan, as you will be able to obtain them in advance, thus speeding up the process. The transaction will take place soon after the contract is signed. The requested credit can arrive to your designated account within a few hours.
The Good Finance payday loan calculator will help you choose the best payday loan. If you don’t want to waste your time going from bank to bank and listening to payday loan offers, apply for a loan online. When applying for a loan online, you can find out more quickly if you have approved a credit institution than personally. The system submits your claim directly to the bank’s pre-review or review department, so you can find out whether you’re eligible for the credit within a few hours.