In order to understand how a money loan transaction works, you go to the FAQ page of your lender of choice. But instead of jumping from one website to the next just to get all the answers to your questions about money loan services, here is a compilation of the most frequently asked questions:
1. What are the factors that come into play when my lender is computing the amount that I can borrow?
Since an online money loan lender will only ask for a proof of employment, an active bank account, a proof of age and citizenship as well as a duly accomplished electronic form then these will be the only information that will be considered for the computation. No credit check is required so your financial history should not deter uou from having your money loan application approved.
To be exact, your lender will use a special formula wherein the total amount for loan will only be about 35% of your total salary. This is to ensure that you can pay the money loan back within 30 days and still have enough to spend for your daily living costs.
2. If I prepay, will the amount be deducted from my principal loan?
This is one point that you have to be very careful about as there are lenders that do not deduct the prepayment to the principal loan. Instead, the over payment will be applied to future installments. If this happens, the over payment will be subject to the application of an interest rate instead of having that full amount deducted from the principal loan.
3. Is there a need to fax documents?
Most online lenders will not require you to fax documents in order to reduce the possibility of identity thieves. However, there will be instances that you will be required to fax in documents if your employment and banking information could not be verified by the system.
4. Will I be notified prior to the withdrawal of funds from my account?
Yes, you will be notified about 24-48 hours prior to the withdrawal of funds from your bank account. This will give you time to make sure that there are enough funds in there to pay for the loan that you took.
In case there aren’t enough funds, contact your lender to stop the withdrawal and make new arrangements. This way, you will not be charged by both your bank and lender.
Getting money from a web-based money loan lender is very easy. The transaction is fast, the requirements are quick to gather and you have access to it even if you have bad credit. Just make sure that you understand all the terms of the contract before accepting the funds from your money loan lender.