What are short term loans in Washington?

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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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