What are short term loans in Washington?


What are short term loans in Washington?

Documents required

As per the regulations of Washington State, customers to avail short term loans must provide:

  • The latest pay stub or payroll receipt
  • Customer’s receipt documenting payment of government benefits
  • Record of bank statements

Salient Features

Some of the features of short term loans in the state of Washington are as follows:

Loan Amounts:

  • Minimum loan amount is $100.00
  • Maximum loan amount is $700.00 or 30 percent of the borrower’s gross monthly income, whichever is lower.
  • Based on your income and other factors, loan limits will be determined on an individual basis.

Permitted Fees:              

  • $100.00 – $500.00 limited to 15 percent of the principal
  • $500.00 – $700.00 limited to 10 percent of the principal
  • The cost of a loan is $15.00 per $100.00 borrowed for the first $500.00 and $10.00 per $100.00 borrowed for anything in excess of $500.00.
  • The Annual Percentage Rate (“APR”) will vary depending on the length of your loan.

Term of Loan:   

  • 8 Days —45 Days

Number of Loans:

  • In a 12- month period the maximum number of loans a single borrower can obtain is eight (8).

Payday loans

A payday loan, another type of short term loan, is a small, unsecured, high interest, short-term cash loan. Being extremely popular, quick loans are still a convenient solution for budget management. The best thing about short-term loans is that they help tide over constant cash shortages while addressing urgent requirements for additional money.

How to apply for a Washington payday loan

Whether you apply in-store or online, lenders will require you be a US citizen or permanent resident, at least 18 years old and have a regular source of income.

In order to complete the application successfully, the following information is required:

  • Your name, date of birth, Social Security number and information from a valid form of ID
  • Your employment status, employer contact information and gross monthly income
  • Your address, email and phone number
  • A blank check (in-store) or access to your checking account (online)

Right to an Installment Plan – A borrower also has the right to convert a small loan into an installment plan. The borrower must make the request before the close of business day before the small loan’s due date.

Right to rescind (cancel) this loan – A borrower may rescind a small loan before the end of the business day immediately following the day on which the small loan was made. To rescind a small loan, a borrower must inform the lender and must return the cash amount of the principal of the small loan to the lender.

Student loans

Short-term Loans are also available to registered students who are experiencing an urgent but short-term financial need. However, before applying for a short term loan, one should make sure that the address and direct deposit information is up to date to ensure quick receipt of funds. One should also carefully consider his/her ability to repay, prior to borrowing short term loan funds as a short-term loan is intended to be paid within a short time span. 


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