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Pennsylvania Payday Loans Online
News about Pennsylvania’s total loans was included in FDIC’s report during the first quarter of 2021. The report mentioned the decline in the overall loan balances of the banking industry despite their slight increase with community banks. Although their volume slightly decreased, it’s still evident that people in Pennsylvania had to rely on money-lending institutions.
If you’re trying to get a loan, specifically a payday loan, it is impossible to do so in PA. We’ll help you go over the crucial details you need to know. This article will include general information about payday loans, online processing, and state-specific regulations.
Payday Loan – Definition
A payday loan is a relatively small short-term loan you’re required to pay when your paycheck arrives. When getting a payday loan, the borrower needs to sign a post-dated personal check for the loan that amounts to the borrowed sum, the charges, and interests.
This loan is due immediately once you get your paycheck. When applying for a payday loan, you can select a lender with a broker or choose to deal with the lender directly.
Online Payday Loans
Due to the advancement in technology and the convenience it now offers, there are currently payday loans that can be processed and approved via the internet. Usually, with online payday lenders, you’re making an agreement directly with a service provider. Here are some advantages you can enjoy with online payday loans:
- Lower chances of rejection – When applying for an online payday loan, getting approved is more likely than being turned down. Online lenders have simple requirements that you can pass with little to no difficulties. Besides, there’s no need to worry about your credit score being checked.
- Less physical human interaction – You’ll be able to process everything online through the platform. Moreover, once approved, the online lender will directly transfer the money to your bank account.
- Faster loan process – Online payday loans are processed faster. There are even instances when the lender can forward you the money within the day of application.
Pennsylvania’s Online Payday Loans Ban
Pennsylvania has a law that makes traditional payday loans prohibited. The state incorporated certain restrictions in payday lending in 1998. For instance, lenders with no Consumer Discount Company Act (CDCA) licenses can’t charge an annual percentage rate higher than 6% for a loan of at most $50,000.
Therefore, if you are planning on borrowing money from a financial institution in Pennsylvania, opt for personal loans or a payday alternative loan from a federal credit union. Besides, stay alert and avoid fraud when it comes to companies that try to offer fake money-lending opportunities in PA, as this practice is completely illegal.