20 May Cash Advance | Understanding Payday Loans
Interest rates and payday loans – How it works
Instant payday loans in Canada tend to have high interest rates. The standard amount for these online loans is around $300, with a 2 week repayment schedule. This, for most people is an affordable loan to pay back, with the two weekly payments being around $160.00.
You need to check with your Canadian online payday loans consultant what the fees for your loan are. In some cases, your entire interest is charged within your loan fees, for example, you may choose to borrow $500.00. Your online loans consultant may tell you that the interest will be $21.00 per $100.00 you borrow, making your total repayment $605.00. Some instant payday lenders also charge interest on top of a fee. This means that you may be signing up to pay back not only your loan amount plus the fees, but interest on top of this. Let’s look at a $500.00 loan again, with the same $105.00 fees over a repayment period of 2 months. If your lender charges 35% interest per annum (much higher than Private Loan Shop), you will be forced to pay a little over $15.00 extra per month. This brings your total repayment to around $645.00. That works out to be 29 cents in fees for every dollar you borrow. Of course, the longer your loan term is, the more money you will accrue in interest. Repaying this amount on a payday loan is not uncommon, and in fact, with some loan companies you can end up paying almost double your original loan amount back before you are able to finalize your loan.
Different online payday lenders in Canada have different fees and charges, it is important that you know what you are getting yourself into before you apply. Some online loans have a late repayment fee; most of these fees are around $35.00 per late payment. Some lenders will waive this fee if you let them know that your payment will be late, some will charge the late repayment fee regardless of circumstances.
This is not to say that instant cash advances are not worth applying for. These cash boosts mean that people can get through their day to day lives without having to worry about bills or stress about how they are going to afford necessary items. Online loans like these are available all over the world. Thousands of people are approved for these kinds of online loans every day. It is all a matter of personal choice and shopping around for the company that can best attend to your needs.