While certain details can vary, all online payday loan lenders work pretty much the same way. They all require the consumer to fill out a form containing personal information, including employment, financial, banking, and reference information. They also have certain minimum requirements to qualify for a loan. These include a job or regular income that totals at least $1000 per month, and a checking account that supports direct deposit. Some lenders also require faxed copies of bank statements and pay stubs, but most lenders are now faxless. The number of recent NSF (non-sufficient funds) charges a borrower has incurred as well as the number of outstanding payday loans is factored into the qualification process.

Once the form is completed, it is reviewed by the lender. If the borrower meets the requirements, they are then notified that they have been approved. Sometimes this is via email, but it can also happen by phone. In the process of reviewing the form, the lender determines the amount of the loan, which is usually between $100 and $500. The amount approved depends on various factors like monthly income, age of the checking account, availability of direct deposit, number of NSF charges, length of employment and time at residence. If the lender requires faxing, the borrower will be asked to print and sign a loan agreement and fax it in along with the other documents requested. Most lenders are now faxless.

After the borrower is approved and all of their information has been verified, then lender does the administrative work required to disburse the funds. Since most lenders electronically deposit the money in the borrower’s account, they will typically receive the funds on the next business day. If the form is received late in the day, it might take an extra day to receive the money for the same reason that banks say that any transactions after 2PM or 3PM will be processed on the next day. These times are only estimations and may vary depending on the lender.