Find Small Personal Loans Near You and Get Quick Cash
In the US, in many cities, local personal loan stores can be seen frequently. They are easily spotted with neon signs screaming, “GET CASH FAST,” and it sometimes appears as if they are on every street corner. The process seems simple enough. Here, we explore how personal loans work.
The first bit of useful information is that personal advances and loans are, simply, loans. You borrow money with the promise of paying a principal amount back plus an agreed upon interest rate—and any other associated fees. Should the borrower fail to repay the loan on time, more interest accrues for the lender.
Personal loans don’t last long. As suggested by the name, the loan terms are generally for no longer than a single pay-period—two weeks. For many, the intent of the loan is just to make it through until the next pay check.
Lenders of personal loans don’t usually require recipients to pass a full credit check. The borrower may not even be required to provide a social security number. They generally require requests to simply submit pay stubs and bank statements to prove financial responsibility.
As part of the final agreement, and in order for the lender to turn over the loaned funds, the requester is required to submit a personal check in the amount of the financed amount including any related fees.
Once the due date arrives, the borrower is required to return to the brick-and-mortar store to repay the loan, interest, and any other fees associated with the transaction. If the borrower does not return, the store may deposit the check left behind by the borrower to redeem payment.
The kicker is that the interest rates on personal loans are super high. In the US, typical personal loan lenders can charge between 15 and 30 percent of the total financed amount. These institutions can easily earn $300 on a $1000 loan. It is a lucrative business, indeed.
Should you choose to request a personal loan, the process for borrowing is fairly simple and can be done quickly. Be sure and bring checking account information as well as previous pay stubs. But, think through the reason for your loan. Some make personal loans a habit and borrow from one store to pay others. It can quickly become quite expensive.