All the Payday Loan Questions Answered
July 18, 2013 | BY MOMBO
Sometimes, even the most prepared people may find themselves in a cash crunch. Financial hitches can be as inescapable as they are upsetting; this is why it is essential to have the backup of a mobile payday loan.
Surveys indicate that although Kenyans do an incredible job of maintaining their finances, they will need occasional help. A higher percentage of them are going for the payday loans to bridge a short-term money deficit or to cover for unplanned expenses that may arise before the next payday, without incurring rotating debt.
The best payday loan lenders in Kenya provide mobile apps that allow for painless loan application process. These apps are user-friendly, easy to navigate and automated, and make it flawless for one to get their loans, fast.
This article covers the wide-ranging question that people frequently ask about payday loans.
How often should one use payday services? A payday advance is a short-term remedy to an emergency need that crops up between paydays. It is by no means a long-term solution for continuous finance management. One should not use the payday loans on a frequent or ongoing basis because it can result in serious financial hardship.
Are mobile payday loans confidential? Most people prefer keeping their financial information a secret, and the lenders understand this fact too well. As such, they guarantee 100% confidentiality in all transactions. Some applicants raise concerns about their references finding out about their financial situation, but this should not be a cause for worry. The best payday loan providers in Kenya will only call the reference to confirm whether the provided numbers are valid. Financial institutions respect the client’s privacy desire in handling their financial matters.
How do lenders determine a payday advance amount? Loan amount largely depends on a person’s current income. Sometimes, a person may get as much as they would like. However, it is not always helpful to request for more than one can comfortably repay. Payday loans come handy during emergencies, to cater for the unexpected costs, and can suffice a financial hardship between paydays – but it should be used responsibly as part of a short-term plan.
Why do financial organizations provide a lot of information in the agreement? The customer agreement serves as a contract that binds the two parties. The contract indicates the terms of the transaction, including the fee for the service in cash and as an APR (annual percentage rate). It serves to bind the two parties and cut out any surprise element that may arise later on.
What happens when one does not have funds to repay the loan on their due date? Just like clients, lenders hope that this does not occur. However, in case it does, the best payday loan lenders in Kenya are devoted to collecting the loans in a fair, professional, and lawful way. If the lenders try to debit an account and it bounces because of insufficient funds, clients may be eligible to pay the returned item fee as stipulated in the contract. Most lenders will charge non-sufficient funds (NSF) fee for the returned check and may even withdraw the checking account privileges from the client.
Does one face criminal charges if they do not pay their payday loans? Reputable payday loan lenders in Kenya will not press criminal charges against a client due to unpaid funds; however, if they become negligent, the lender will bar them from getting another loan. Other actions may include reporting the client’s account information to the credit bureaus, referring the case to a loan collection agency, or using other legally acceptable means to collect the funds due.
What if one is dissatisfied with the solutions rendered? Trusted financial institutions strive to offer professional and friendly customer support solutions to guarantee satisfaction. Nevertheless, if an issue arises with the payday loan, it is advisable for one to contact the company and have them address the concern. In the unlikely event that the two parties fail to resolve the dispute, agreement contracts provide that one can request arbitration or take the issue to small claims court where a neutral third party can help to make a binding decision.
Can someone pay his or her Payday loan early? Yes. Be sure to talk with the service providers to arrange for the early payoff.