Sometimes people, despite their best efforts, find themselves in need of small to larger amounts of money between paydays. Instead of going to a traditional bank that only lends large amounts of money, typically $5000 or more, many people opt to apply for instant payday loans online. These fast payday loans are much smaller than a traditional bank loan and can be as low as $100 to as much as $1000.
Lenders determine the amount of instant payday loans based on your income and the type of pay period that you have. Generally the higher the income the more you can borrow up to the maximum set by state regulations, which is $1000. In addition to this principal amount you will also be charged a fee for processing fast payday loans that is a set amount based on the total amount borrowed. The more money you borrow the higher the fee will be. This fee and other costs are also regulated by each state.
The Market for Instant Payday Loans
When you are in the position to have to borrow for fast payday loans it may seem like you are the only one that his having financial difficulties. However, the industry is large and constantly evolving to serve customers more effectively.
In the year 2010 stores that offered payday loans were estimated to have lent out over 29.2 billion dollars to people throughout the United States. In addition in the same year online lending for fast payday loans was approximately 10.8 billion dollars for a total of about 40 billion dollars for the industry as a whole.
The Future of Payday Loans
The trend in the industry is definitely moving from the old style of store types of businesses providing these loans to internet lenders and instant payday loans. The easy of applications online and direct deposits and withdrawals from bank accounts makes the online option much easier for both borrowers and lenders.
It is interesting to note that many traditional financial institutes are now trying to get into the market of offering fast payday loans for their clients. This definitely shows that there is a need for payday loans to help people get through emergency situations that impact their budget.
