Meaning
of Pay Day Loans:-
Payday loans are also called “payday
advances” and "online personal
loans" are unsecured loans, meaning that there is no collateral and
usually no credit check required for approval. A payday loan is a small,
short-term loan that a borrower uses to cover expenses until the next payday.
The borrower writes a check to the lender for the amount of the loan plus fees
and the lender deposits the check on the borrower's next payday. Payday loans
are granted based on your income and are designed to be paid back on a
specified date that corresponds to your pay dates. Sometimes they can be paid
back in multiple payments, but usually you are required to pay back the entire
amount plus interest in one payment.
Pay Day Loans in Virginia:-
A payday loan in Virginia under the
Payday Loan Act, 86.1-444 et seq. of the Code of Virginia. The Virginia Payday
Loan Act which allows payday lending in Virginia has been amended by the 2008
Virginia General Assembly.
In
General: You are responsible for evaluating whether a
payday loan is right for
you. Alternatives may include
among other things less expensive short-term financing
from another financial
institution, family, or friends, a cash advance on a credit card, an
account with overdraft
protection, or a loan repayable over several months.
from
Lender:
The lender is required to provide you with a clear and conspicuous printed
notice advising you that a payday loan is not intended to meet long term financial
needs and that you should use a payday loan only to meet occasional or unusual
short-term cash needs.
Payday
Lending Database:
Before making a payday loan to you, a
lender is required by Virginia law to access a database that contains detailed
information about payday loans made to Virginia residents by all lenders
licensed to do business in Virginia. The database will inform the lender
whether you are eligible for a payday loan.
To enable the lender
to check the database, you will be required to provide the lender with your
original driver's license or identification card issued by a state driver's
licensing authority (for example, Department of Motor Vehicles for the
Commonwealth of Virginia). If you wish to obtain a payday loan but do not have
a driver's license or identification card, you will need to obtain a driver's
license or identification card from the driver's licensing authority in your
home state.
Requirements
of payday loans in Virginia:
·
The person wanting to get the
loan must be at least 18 years of age.
·
He should have a genuine email
address.
·
He should be a citizen of Virginia.
·
He should carry a social number
of insurance.
·
He should have an active bank
account.
Benefits
of Payday loans:
It has ample of benefits. Some of
them are discussed as under.
·
There is no requirement of
visiting to the local bank.
·
The cash is easily accessible at
the time of need.
·
These are convenient loans and
provide anyone to handle the instant troubles of finance.
·
We have Pay Day Loans On Line In
Virginia Instant Approval, No Faxing and No Credit Check for Pay Day Loans On
Line In Virginia.
·
It is approved very quickly
within no time and processed fast.
·
It is free from any stress.
·
These loans are a part of short
term loans.
·
It may be possible that there may
be certain additional fees when you actually
select this option.
·
The information given in the form
should be honest and can be verifiable.
·
One can never guarantee that your
application will be accepted.
·
Submitting the form online
facilitates you to connect to the lender within few seconds.
·
All the payments are processed by
the lender through electronic transfer from the bank account.
·
They can provide a short term
credit which helps borrowers to cope up with the expenses.
·
Payday loans are best for those
people who have no savings for meeting their
urgent expenditures.
·
One is not required to fulfill
any stringent requirements. Therefore it is one of the most appropriate forms
of getting credit for borrowers.
·
To obtain this loan, one needs to
have a steady income and should submit some identity proof like driving
license, passport etc.
Maximum
One Loan At a time:
The lender cannot have more than
one loan outstanding to you at any one time. If you currently have an
outstanding payday loan from any lender, you cannot obtain another payday loan.
The maximum loan amount is 500$
Minimum
Loan Term:
Under Virginia law, your loan
term must be at least twice as long as your pay cycle. For example, if you are
paid on a weekly basis, your minimum loan term would be 14 days..
Charges,
and Interest :
·
Interest at a simple annual rate
of 36%,
·
A loan fee not exceeding 20% of
the amount of money advanced to you e.g. 20$ per 100$ advanced.
·
A verification fee not exceeding
$5.00.
Prohibition
on Loans to Individuals in Virginia law:
In Virginia law prohibits a lender from
making a payday loan to you if-
·
you currently have an outstanding
payday loan;
·
you paid or satisfied in full a
previous payday loan on the same day that you are applying for a new payday
loan;
·
In the past 90 days you paid or
satisfied in full a previous payday loan by means of an extended payment plan;
·
In the past 45 days you paid or
satisfied in full a fifth payday loan that you obtained within a period of 180
days;
·
In the past 90 days you paid or
satisfied in full an extended term loan;
·
In the past 150 days you entered
into an extended term loan.
If
you cannot repay the loan:
·
The lender is permitted to recover from you any fee
charged to the lender (maximum of $25) as a result of your check being returned
due to your account being closed by you or containing insufficient funds, or if
you stopped payment on your check.
