Payday Lending Options in Canada and USA – Everything You Need To Know
The specifics of the work of payday lending services in Canada and the USA are almost identical. At the same time, in Canada and the USA, the working conditions with payday loans are almost the same.
Similar terms of Canadian and US payday lending services
In most countries of Canada, as well as the United States, payday lenders offering as an example payday loans in Austin Texas operate according to standard rules and have certain similarities:
- High interest rates — absolutely all payday lenders offer high interest rates;
- Quick and easy loan processing;
- Convenient location — lenders are often located in those areass where there are no bank branches;
- The interest rate on loans. On average, the interest rate is approximately the same in different countries. It may depend on the term, the amount of the loan, the borrower’s credit history, as well as the economic situation in the country.
Differences in the USA and Canada
According to the rules of payday lenders, in Canada and the USA, any resident of the country can get a payday loan. Borrowers in the USA and Canada should be users of the electronic system, which has a high level of trust among lenders.
In Canada, the rules are a little stricter. Only an adult resident of Canada who has permanent registration at the place of residence can become a borrower. According to statistical studies, each country determines its own segments of the population that actively use small loans.
In the USA, the majority of people using cash advance are middle-aged women. In Canada, these are mainly people in need – either men or women. But in any country, these are borrowers who need a small loan amount, quickly enough and in the shortest possible time, before the salary.
Issuance and repayment terms
Disbursement of funds on loans is available in various ways: funds can be transferred to a bank account, to a bank card or through one of the payment systems. Repayment of outstanding loans occurs in the most convenient way for the borrower.
The amount and terms of the drscribed two countries
Loan amounts vary significantly from country to country. The highest amounts that can be on payday loans are issued in Europe. They can reach several thousand euros. In the USA, the loan amounts are smaller, but slightly different from European ones. In Canada, the amount of loans is much smaller, its value depends on the borrower’s reliability.
Terms in the USA and Canada are not different. The duration of issuing a microloan rarely exceeds one month if we speak about payday loans.
Advantages and disadvantages
The absolute advantage of MFOs can be called more affordable and favorable terms on which payday loans are issued. Of course, the huge advantages are longer terms and large amounts of loans. In both countries, receiving a large amount on a loan is already a reason to contact the bank.
Probably, the main drawback of MFOs in Canada is their attachment to the electronic system. This is due to the fact that this payment system assumes obligations to pay money in case of fraud. In the USAa large number of ways to receive money on loans and options for its repayment is one of the main advnatgaes.