FDIC’s report during the first quarter of 2021 showed the total loans of Pennsylvania. In the report it was evident that the overall loan balances of the banking sector greatly reduced. Regardless of the fact that the figures reduced, it is crystal clear that many residents of Pennsylvania preferred the services of money-lending institutions.
If you desire a loan, specifically, a payday loan, you cannot get it in Pennsylvania. Don’t panic! We will show you how to go through it successfully. This article will provide essential information on payday loans, its processing and the state regulations.
What Are Payday Loans?
A payday loan is an amount you are required to pay when you get your paycheck. It is a short-term loan. To get a payday loan, the borrower is expected to sign a post-dated check indicating the amount to be borrowed, the interest as well as the charges.
Immediately you receive your paycheck, you are expected to pay back. If you want to apply for a payday loan, you are at liberty to select a lender that has a broker or you can deal with the lender directly.
Online Payday Loans
The advent of technology has brought convenience. This means that many payday loans acne be accessed using mobile devices and the internet. With online payday lenders, borrowers are making an agreement with the lenders. Some of the advantages you will gain are:
- Little or no rejection: With the online payday loan, there are fewer chances of being rejected. The online lenders provide little requirements that anyone can pass without any difficulty. Interestingly, there is no need for you to worry about having your credit score.
- Reduced physical appearance: Everything is done online. You will comfortably access your activities online. In addition, when everything is successful, you will get your money directly to your account.
- Easy loan process: The online payday loans are faster to process compared to the traditional system. There are even different instances where the loan provider can give the borrower the money within the same day of applying for the loan.
Online Payday loan Ban In Pennsylvania
There is a law in Pennsylvania that prohibits traditional payday loans. The state introduced various restrictions in 1998 regarding payday lending. For example, lenders that did not have Consumer Discount Company Act (CDCA) licenses may not be able to charge an Apr that is above 6% for a loan of $50,000.
As such, if you want to borrow money in Pennsylvania, it is best you settle for personal loans or for alternative loans from a credit union. However, you must also stay alert so that you don’t fall prey to the many fraudulent companies that offer fake lending opportunities in the state.