Payday Loans Phenix city AL (Alabama)
Popularly known as Hub City, is the Phenix City of Alabama. The city has a population above thirty thousand and is one of the larger cities in the state. It is also named as the best affordable suburb for raising a family in the Business Week 2007. Another interesting fact about this city is that it uses the eastern time zone even though the state itself lies in the central time zone. The reason behind this is its closeness to the bigger city of Columbus.
The city is an affordable place to live and less than 20% of its population is said to be below the poverty line as per the last census. You may have the perfect job that pays all the bills or you may be the most financially well-planned human in this world. Anyone and almost everyone in their lives has gone through a time when finances become trouble. It can be something less serious like car trouble which is not covered under insurance or a more serious situation like paying medical bills from your own pocket.
Online Payday Loans Alabama
When you are in such a situation where even though the need is very urgent it is small what do you do. The most common way to deal with such emergencies is to ask someone in your family or a close friend. However, when you do that you have to face many questions and judgment from people close to you. So is there another way to find help. There indeed is, and this other way is called a payday loan.
As the name itself suggest it is a payday loan, a loan you borrow and return on your payday. These loans come with a very high rate of interest. Considering that the loan amount is very low and the term is very small it is justified that the lender charges a high rate to make a profit. Even though the rate is high, all of these factors are regularised by the state government. Yes, these loans are not like the loans that were given out by loan sharks in the old days, where there were no rules and the borrower would eventually fall into the trap of the lender. These loans are carefully monitored by the state. Most of the states in the country have now given legal status to these loans and so has our state of Alabama. Hence in Phenix City also these loans are legal. Every lender that offers them must have a state license.
What all factors does state control online payday loans Alabama?
- The Maximum amount any user can borrow is set at $500. That means even if a user is taking five loans at one time, the total amount of all these five loans should not exceed $500.
- The time for which the amount can be borrowed can range between 10 to 31 days. Along with this, the lender is also asked to offer a monthly installment repayment plan.
- The rate of interest a lender can charge is limited to 17.5%, however in case the borrower does not payback on the decided date then the lender can charge another 3% per month.
Apart from these factors, other things like how much other charges like processing charges, court charges, etc. a lender can charge are also regulated. To get all the details you can connect with the State Banking Department. To file a complaint against any lender not following the said rules also the same department can be contacted.