PaydayAct

No fax payday loans are meant for people who do not have a good credit rating and are unable to provide any collateral or fax the necessary documents for availing payday loans. Borrowers are expected to provide proof of age, address, identification, Social Security Number or Individual Taxpayer Identification Number and also fax pay stubs to avail payday loans. However, lenders who provide ‘no fax payday loans’ are more than willing to lend money to borrowers, even in the absence of the aforementioned documents.

A few lenders are believed to be extending same day loans for the unemployed. These loans are modeled along the lines of no fax pay day loans. They are sanctioned by lenders, to borrowers who do not have the pre-requisites for availing a loan from traditional lenders. The confounding question surrounding these loans is that, are lenders dealing with borrowers who may never be able to repay the borrowed sum?

Same Day Loans for Unemployed – How do They Work?

A same day cash advance (loan) is a blessing for people who need money for meeting unforeseen expenses. The borrower is expected to be at least 18 years of age, have a checking account that has been active for the past 60 to 90 days and provide the checking account number to the lender. The consumer is expected to fill out a simple application form that is processed within an hour, since there are no accompanying documents that need to be verified. In other words, the process of availing a loan becomes simple since the lender does not have to check the authenticity of a horde of documents. Generally, the borrower is sanctioned up to $1500. This amount is deposited directly in the borrower’s checking account and has to be repaid within 30 days. However, the borrower has to contend with harsh repayment terms since the lender assumes a great deal of risk by providing cash advances to the unemployed. Read more on cash advance lenders.

Disadvantages of Same Day Loans for Unemployed People

Same day loans are sanctioned to unemployed people even though they do not have a job or a collateral.The prospect of the borrower getting a job within 30 days, in an economy where unemployment is at an all time high, is really bleak. In case the borrower is unable to get a job he/she would be forced to roll-over the loan. Rolling over the loan is possible, provided the lender agrees to extend the repayment period. However, this facility comes at the price of a high rate of interest. In other words, the annual percentage rate (APR), that is charged by the lender, is exorbitant. In fact, the APR is higher than the APR charged by the lender on payday loans. This is because, in case of the latter, the borrower at least has a job and the money that is lent is loosely secured by a post-dated check which the lender en-cashes, the day the borrower receives his/her paycheck. Given that the roll-over rate is very high even in case of pay day loans, it’s but natural that same day loans for the unemployed have a high default rate.

http://www.buzzle.com