Your payday loan is linked to an account in which the funds will be credited when you have accepted the request and from which the amount of the payday loan with installments will be debited on the due date of each of them.
If the expiration day is a business day, the automatic debit will generate the total collection of the overdue instalment as long as you have sufficient funds.
If the funds do not cover the total fee, a partial payment will be made. The partial collection does not imply that the instalment is paid, for which, for the remaining balance, you will continue in arrears and, therefore, compensatory and punitive interests will be generated.
If the due date is not a business day (non-business), you can pay your loan instalment manually, from Online Banking, from the Santander APP, entering with your Santander password and User in the “Loans” section. In this way, you will avoid being charged surcharges for late payment.
If you have the funds to cover a fee that has not yet expired, but you want to pay it, you can do so manually up to 15 days before expiration through OnlineBanking, App Santander or SuperLínea.
What happens if I am late in paying an instalment of my credit?
Being late in paying a loan can have unpleasant effects.
When there is a delay in the payment of the debt, the Bank can start charging penal interest according to the conditions agreed in the promissory note, which are normally set considering the maximum conventional rate.
More and more payday loan alternatives are emerging.
But in the wake of the COVID-19 pandemic and the inequalities it has exposed and exacerbated, there is a renewed focus on the need to counter payday lenders by providing better and fairer banking services (personal loans, but also mortgages and small business loans), primarily for low-income people, who have long struggled to access them.
The federal government, as well as corporations and at least one big-name philanthropist, are pumping money into Community Development Financial Institutions (CDFIs), financial service providers whose mission is to provide financial services to low-income communities and members of rural, urban and urban communities and Aboriginal—places that many traditional banks have largely excluded. The innovative infusion of money is equivalent to an investment of billions of dollars.
Discover the options for payday loans
Although CDFIs welcome customers with poor or limited credit history, some may require you to have a bank invoice with them as a prerequisite for a loan. Therefore, it makes sense to establish a relationship with a CDFI—or, alternatively, a credit union—before you need to take out a loan. Joining a CDFI can be affordable. Many offer free or low-cost banking services, with an initial deposit as low as $25.