A Payday Loan is a short-term cash loan until the next payday of the borrower. Payday loans are also known as cash advances, paycheck advances and paycheck loans. The payday loan is backed by the borrower’s promise to repay it from his/her next paycheck. Because of that most payday loans are for 2 weeks or less, depending on how close the consumer is to the payday. Most Canadian payday loan lenders will limit the amount of money you can borrow to 30% of your paycheck after taxes. Payday loans are usually in the $100 - $800 range.

Payday loan lenders will ask the borrower for proof of regular income, banks account and permanent address. The borrower will be required to sign a postdated check or to authorize a withdrawal from his/her bank account for the amount of the loan, plus all associated fees and interest charges. This ensures that the loan will be paid back. Some payday lenders will require a credit check, before giving you a cash advance.

One thing you need to know is that payday loans are very expensive. The annual interest rate for these loans is in hundreds of percents. The payday loan companies charge various service fees and of course they charge very high interest rate on the borrowed money.

Payday Loans Canada

Payday Loans Canada > Canadian Payday Loans