5 financial terms to know before asking for a payday loan by phone number

It is clear that the creation of entities specialized in a pdl loans phone number, responds to a real need for short-term financing by many people.

In this sense, one of the premises that must be fulfilled at all times by entities that include the provision of quick loans is to clearly inform clients about the conditions offered for the implementation of this type of financial services.

In this sense, it is necessary that any person who chooses at a given moment to request a quick credit must have clear some concepts that will mark the conditions to be fulfilled between the lender and the borrower, that is, the person who receives the money. The main ones are:

  • Capital: is the amount of money that the financial institution makes available to the borrower. It must be clear that the capital is not the amount that has to be returned, but the amount that is received. The amount that we will finally have to repay is the result of adding to the capital, interest, and commissions that have been included in the loan concession contract.
  • Commissions: Commissions are one of the aspects that must be taken into account, as they will largely mark the total price to pay for the credit. Thus, they are amounts that the lender charges to clients for certain procedures that are necessary throughout the process of granting and managing the credit. Among the most common we can find the following:
    • Study fees, derived from the work and management that the financial institution needs to develop before granting the loan to verify the client’s economic situation.
    • Opening fees, which respond to the formalities required for the formalization of the loan and the delivery of money to customers.
    • Commissions for modification of conditions, for the necessary procedures to change the clauses of the agreed contract.
    • Fees for early cancellation, in order to be able to collect, at least in part, the interest that is not received if the client returns the money before the agreement.
  • Term: The term is the period of time in which all amounts loaned to the borrowing entity must be returned. Within this agreed period, the commitment to return the money in a certain number of installments will have been included.
  • Amortization: Amortization is the payment of the amounts themselves. Therefore, in each installment that is paid, what is being done is to amortize a part of the initial capital.
  • TAE: These acronyms correspond to the initials of the Annual Equivalent Rate. This rate is used to compare 2 loans in the same period of time. In short, the APR is the interest rate associated with the credit, including the necessary commissions.