If you are planning a borrowing but don’t want your bank to tell you what you can spend or face unexpected expenses that you suddenly need money for, a payday loan may be an ideal choice, but be aware before jumping into the first branch.
Eligibility of borrowers
A payday loan can be applied for by any natural person who is a legal person who fulfills the lending conditions of the given financial institution or who is considered creditworthy by the bank during the credit assessment.
The first thing for the selected bank is to check if we are on the Central Credit Information System (KHR) negative debtor list. We can be listed first and foremost if our outstanding balance is above the relevant minimum wage or if this is the case for at least 90 days.
So, as long as we have not settled our arrears or the bank to which we belong has not enforced its claim on us, we will certainly not receive a payday loan.
It is also important to know that not only can you apply for a payday loan with the bank where you keep your current account, but that we must still meet the above conditions.
Work – Work – Work: The length of our employment
One aspect of the credit assessment is the length of the applicant’s current employment relationship. Banks consider a long-term loan applicant to be a more reliable customer, so the longer we have been at our current job, the better the rates are. As shown in the calculator below, the minimum period of continuous, ongoing employment is at least three months. In the case of pensioners, banks do not consider this condition.
The most common lower threshold is 18 years of age, but typically the maximum is also set. The latter is not to be examined at the time of application, but is to be calculated in relation to the time of future completion. This condition may also vary from bank to bank and can now be checked on most offers.
Perhaps the parameters of the loan you want to borrow are most influenced by your monthly income. Most offers set a minimum monthly income of around $ 500. Of course, some offers are considered to be even lower, up to a minimum of $ 200, but in this case you will almost certainly have to apply with a co-claimant to get the amount you want.
The maximum loan amount
A payday loan traditionally extends to borrowing a few million. One of the reasons for this is that the only collateral for the loan is the claimant’s income, no real estate or other collateral, so the bank takes more risk.
However, it is important to know that innovative banks in the market are already lending up to a maximum of $ 10,000,000, which has two enormous advantages over comparable loans: the freedom to use it and the need for a mortgage.
If the goals are clear, only information and planning are ahead. In order to avoid any unpleasant surprises, it is in our best interest to be aware of the cornerstones of a given payday loan. On a calculator page similar to the one below, we can not only plan for a loan, but also ask for a personal callback, where the administrator of the product will be happy to answer any questions you may have.