Refund Anticipation Loans (RALs)*

How does it work?

• A RAL can be applied for in addition to a customer’s request to receive an Electronic Refund Check or Deposit (ERC or ERD)*  To qualify, taxpayers must have a minimum anticipated refund amount that will cover the loan plus all fees.
• Approved taxpayers receive a loan for a portion of their anticipated refund typically within 24 hours of IRS acceptance of the tax return.
• If approved, a Finance Charge and Credit Investigation Fee are deducted from the loan amount.
• When the taxpayer’s refund is direct deposited from the IRS or state, the loan is repaid. The remaining funds in excess of the loan payoff, tax preparation, and all other fees will be issued to the taxpayer(s) as an ERC or ERD (depending on the disbursement option selected).

How long does it take?

• Loan money is typically available within 24 hours of IRS acceptance of the tax return in the form of a bank check printed at the tax office or direct deposit to the customer’s personal bank account. Although released at the same time as a check file, a direct deposit can take an additional 1 to 4 days to process.

Why do customers choose a RAL?

• Customers can receive money in 24 hours or less to pay bills or handle other unexpected expenses that have been put on hold until tax time.¹
• As the largest sum of money many taxpayers will receive all year, a RAL can be a financial lifeline to help individuals deal with numerous financial challenges.
• A RAL can help a customer’s financial situation but it won’t destroy a consumer’s financial condition.

¹ “Consumer Use of Tax Refund Anticipation Loans”, Credit Research Center, Georgetown University, April 2005, p.62.

*A Refund Anticipation Loan (RAL) is a loan secured by your tax refund and is offered by Republic Bank & Trust Company to qualifying applicants, and is available to Electronic Refund Check or Deposit (ERC or ERD) customers. If approved for a RAL, a Finance Charge and Credit Investigation Fee will apply. RAL proceeds are available within 24 hours of IRS acceptance. A Tax Refund Administration Fee and other fees may apply for the ERC or ERD, and will be deducted from the customer’s tax refund. Visit your tax preparer to learn about all filing and product options, including obtaining your refund without a loan and at no additional cost.