When you sign up for a payday loan, most lenders will ask you to authorize them to withdraw the payable amount electronically on the due date from your bank account. This makes sure that you don’t miss the due date and attract high late fees or default charges.
There are many other options that you can use to pay back your payday loan on or before the due date. These include:
This is the easiest option of them all. You can directly transfer the money from your bank account to the lender’s bank account. Direct bank transfers within Australia generally don’t require any additional processing fees.
You can also pay back your payday loan via cash, an account payee cheque or a prepaid bank draft. There may be small fees associated with cheque or draft payments.
You can pay back your payday loan by via an online payment with your credit card or debit card.
Some lenders may allow you to pay back the payday loan using some other options like PayPal, POLi and Wire Transfers.
No. As long as you are paying back your payday loan on or before the due date, you won’t need to pay any more than what was agreed upon in the loan agreement.
Yes. Most lenders do accept repayments made from bank accounts other than your own. However, every such transaction needs to clearly mention the relevant details such as – loan identification number, name and contact information of the payee etc
Even so, to avoid complications, confusions or payment processing delays, it is advisable to pay from your own bank account.
If you have repaid your payday loan using any method other than cash, you will have an electronic record of the payment to keep track of. Once the payment goes through, you will receive an electronic receipt of the same from the lender.
If you have paid back your payday loan in cash, the lender will have to produce a physical as well as electronic receipt of the payment.
No. As long as you deposit a cheque that is not ‘post-dated’, you will not attract any late fees/fines – even when you deposit it on the due date.
It is fairly safe to pay back your payday loan via cash. However, you need to make sure that you pay cash only at the authorized cash collection centre of your lender.
However, it’s always the best idea to pay back via one of the electronic methods listed above.
If your bank account doesn’t have enough money to pay back your payday loan, the automatic withdrawal will not go through.
You will have to contact the lender to discuss the possible way out. You may choose to reschedule the payback cycle if the lender agrees. In such cases, you need to be prepared to pay high default charges and late penalties.
If you have opted for automatic withdrawals (as detailed before), you won’t have to provide any additional information as the money will be deducted from your bank account automatically on the due date.
If you are choosing to pay with any other method, you need to make sure that you include the following details while making the transaction.
You need to disclose your address and bank account number only once: when you apply for a payday loan.
Yes. You can pay back your payday loan before the due date without attracting pre-payment fees. However, most lenders will still charge you the interest for a full term.
If there is any change in your payday or your bank account details, make sure you let the payday lender know promptly.