Payday loans are simply unsecured and short term loans that you can take anytime you need fast cash. You can secure a loan online from any of the legitimate payday lender or from a local lender around your neighborhood. The State of Kansas, strictly regulate payday loans, so no one can take advantage of borrowers by imposing exorbitant fees and interest rates. This article talks about the Kansas laws on payday loans.
Term of Payday Loan Allowed In Kansas
In Kansas, 7 days is the minimum length for payday loan, while the maximum length is 30 days. In terms of interest rate, the charged is based over 14 day period. So, when you need a loan fast to pay your bills, keep in mind that you have a week to a month to pay the loan back.
Minimum Payday Loan Amount and Fees in Kansas
The Kansas State has no minimum amount set for payday loans, what they have is a maximum loan that is cap at $500. Additionally, residents of Kansas can only takeout two payday loan at a time. Hence, when you need more than $500, you just simply apply for another loan of the same amount or lower.
When it comes to the fees, a payday lender can only charge $15 per $100 borrowed. So, if your payday loan is $500 the maximum fee charged should not exceed $75, the amount should already included the interest rate and other fees. The payday loans are also due within 2 weeks from date of issuance, so that means a 15% interest rate for just 2 weeks caps of the annual 390% maximum yield.
Additionally, a payday lender can also collect a onetime non-sufficient funds charge per payday loan.
Payday Loans As Alternatives
The interest rates and fees from payday loan may seem a bit exorbitant especially when borrower cannot get out of the debt cycle. However, when you consider the overdraft charges from bounced check, credit cards overdue, and other late finances charges imposed by banks for late payment, payday loans is not a bad idea as alternative. The key is to shop around for the best payday lender, which can give you lower interest rates.Share