Requirements of a payday loan

Many people do not realize that being eligible for a payday advance loan is not the same as being eligible for a standard loan. While there are still requirements that a payday loan centre must adhere to, they are not nearly as strict and exclusive as those of traditional standard loan providers.

Such flexibility makes a payday advance loan a faster process which can be taken advantage of by people who are in need of quick cash. However like all other loans, there is always a checklist to be met. Here are just a few of the requirements for a payday loan.

Age and residence- Payday advance loan centres will not accept customers who are under the age of 18 years old. In order to take out a payday advance loan, all customers must be of the appropriate age, and in certain centres, only certified Australian residents may apply. Therefore, it is important for anyone considering applying for a payday advance loan to bring proof of both age and residence. 

Employment status-
What the payday loan centres want to know is if the customer has a steady job. Some payday loan centres will only accept customers who are currently employed full-time, while most will accept part-time employees. Either way, customers interested in a payday loan must prove their employment, with a recent bank statement.

Income- Similar to employment status, payday loan companies need to make sure that a customer makes enough money to qualify for a loan. The bottom end of most payday loan ranges is $800, whereas the high end can vary based on the customer’s monthly income. With this in mind, payday loan customers need to make, at minimum, $800 per month in order to qualify for a payday advance loan, and they need to be able to prove such income by presenting a recent monthly statement from their bank or likewise.

An active bank account- there are payday loan companies that will lend money to customers who do not have an active bank account. However many payday loan companies are requiring customers to have an active savings or cheque account in order to qualify for a payday loan. This is often required because the payday loan centre will automatically debit the funds to repay the loan when the customer has received their next pay cheque. It is one way that companies make sure that they will be paid on time and in full.