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Illinois Payday Loans Online
We all have our specific needs and wants in life. And these days, every single commodity comes at a price. So it is very evident that affording any of that requires a certain financial involvement, without which a transaction is impossible. Luckily, even if one’s income is not enough, loans come to the rescue. Amongst the many variants present in the market, today, we chose to talk about payday loans.
Definition
A payday loan can be defined as a type of unsecured personal loan. A lender may charge a borrower with a high rate of interest based on the latter’s income and the sum borrowed. Usually, payday loans are short-term borrowings and are provided by small-scale merchants. Although banned in some states of the USA, payday loans are still legal and operational in Illinois.
Features
What follows are some of the features of payday loans that you need to be aware of, just in case you are thinking of attaining one:
- The repayment term is shorter than any other type of loan.
- No collateral is required to obtain a payday loan. This makes it an unsecured personal loan.
- These loans are associated with high interest rates due to increased risks for the lender.
- Payday loan lenders, while approving a request, do not take the borrower’s credit history into consideration.
Facts on Payday Loans in Illinois
Nowadays, there are websites providing payday loans with instant approval. So, it has been way easier for loan seekers to obtain a sum of money they require via a payday loan. As soon as the loan is approved, the requested amount is sent to the borrower’s bank account directly the very next day (or even earlier).
As stated above, payday loans are legally operational in Illinois. But certain regulations are in force, making the transaction as fair for all parties involved as possible. Let us find out what rules are in effect for payday loans in Illinois:
- Loan amount: The loan amount that a borrower can obtain is from 100 bucks to 35,000 bucks or up to 25% of their gross monthly income.
- Interest rate: The interest rate has recently been limited to 36% per annum on any amount being borrowed.
- Period: The minimum loan term for repayment of a payday loan is 13 days, while the maximum repayment duration can last for a maximum of up to 120 days.
It is crucial that you check the lender specific requirements before taking out a payday loan. Read the agreement carefully before signing and ask the company’s representative all the questions you are doubtful about.
As you can see, getting a payday loan in Illinois is legal and rather convenient. Thus, if you are in urgent need of money, feel free to turn to this type of money-lending service, as long as you have considered all of the repayment responsibilities that come with it.