Opportunity Loans

Opportunity Loans offers payday loans, personal loans and installment loans, depending on the applicant's state of residence. In certain states, Opportunity Loans acts as a loans matching services organization and arranges loans with a third-party direct lender, according to the company's website.

A first-time loan borrower is eligible to borrow $1000 to $10,000 for personal loans, depending on the loan type available in his state of residence, explains Opportunity Loans. A borrower typically receives loan funds by the next business day after the application is approved. The company deposits loan funds directly into the borrower's bank account.

To qualify for a loan, the applicant must be at least 18 years of age and have a stable income, notes Opportunity Loans. A borrower's income after taxes must be at least $1500, and the borrower must have direct deposit setup with his bank account. An applicant finds out instantly after submitting an application about his eligibility for a loan. Then, Direct Lender creates a loan agreement with the specific details of the loan.
The borrower agrees to the terms of the loan, and once Direct Lender approves the agreement, a request is sent to the borrower's bank for funds to be deposited.

What is a Payday Loan?

Payday loans are short-term, high-rate, unsecured personal loans that utilize a consumer's checking account (usually through electronic access but sometimes actual checks) for repayment of the amount borrowed. These are also referred to as cash advance loans, check advance loans, post-dated check loans, or deferred deposit loans. Since these loans are short-term in nature, the cost of payday loans to the consumer is enormously high, typically averaging annual percentage rates of over 500%. The cost many times exceeds the original loan amount borrowed.

In exchange for a loan, a borrower provides the lender with an authorization to automatically debit his or her bank account. Repayment of the full amount, along with any fees required by the lender, is typically due within 14 days or with the borrower's next paycheck. If a borrower does not have the ability to repay the full amount within the required time frame, he or she can roll over the loan for an additional period of time for an additional fee.

Reference: http://www.mass.gov/ocabr/banking-and-finance/loans-and-mortgages/payday-loans.html#whatis

Payday Loan Terms

Payday loans range in size from $100 to $1,000, depending on state legal maximums. The average loan term is about two weeks. Loans typically cost 400% annual interest (APR) or more. The finance charge ranges from $15 to $30 to borrow $100. For two-week loans, these finance charges result in interest rates from 390 to 780% APR. Shorter term loans have even higher APRs.

Payday Loan Industry

Payday loans are made by payday loan stores, check cashers, and pawn shops. Some rent-to-own companies also make payday loans. Loans are also marketed via toll-free telephone numbers and over the Internet.

At the end of 2010, an industry analyst estimated that there were 19,700 payday loan stores operating, down from an estimated 20,600 stores at the end of 2009. The number of payday loan stores has been dropping since 2006. This same analyst estimates 2010 loan volume at $29.2 billion with $4.7 billion in revenue for loans made by payday loan stores. In addition, Internet payday lenders are estimated to have loaned $10.8 billion and collected fees of $2.7 billion in 2010. Combined storefront and Internet payday lending totals $40.3 billion in loans and $7.4 billion in revenue.

Reference: http://www.paydayloaninfo.org/facts#11