There comes a time in everyone’s life when they are put under severe pressure to pay their bills. Borrowing small amounts of money for a shorter time period through payday loans may just be the ideal solution for such people.
Before accepting the terms and conditions laid out for payday loans in the United Kingdom by various lenders, it is wiser to ensure that you know what you may be getting into. There is hardly any doubt that payday loans have played a significant part in the lives of millions of people in the United Kingdom. They have helped people who faced emergencies and they needed quick cash to sort out those emergencies. Often, making calls to members of your family and friends may not work out as every person is going through tough financial times, today. Applying for bank loans may look like an alternative but the whole process is likely to take more than a couple of days for the banks to go through the loan applications and there is no guarantee that those loan applications would get approved, eventually. Payday loans are the answer to people who are encountering financial emergencies of an urgent nature.
Thre are also not many loans that someone on benefits is likely to qualify for, people who are recieving benefits might want to check this site
There are few facts about payday loans in the United Kingdom that you have to be aware of before you apply for them.
There is no collateral needed to qualify for a payday loan – Borrowers need not bother about falling short of collateral as lenders do not make it mandatory for any assets to be pledged against the payday loan. All that is required is that there should be sufficient documentation to prove the borrower’s ability to repay that payday loan.
Such loans have been exclusively made for those people who are actively employed so that during their paydays, they are in a position to repay the loan amount.
Interest rates for payday loans are going to be very high – Despite playing hardball with applicants, banking institutions generally offer interest rates that are lower. Lenders of payday loans will usually charge very high interest rates. Most payday loan terms have tenure of one month till the next payday and a maximum of £1500 could be borrowed.
Money could be made available to the borrowers in a matter of few hours – Payday loans are ideal for people who seek fast approvals of their loan applications. No credit checks are required to establish credit rating. There are no processes that can further delay the approval of the loan application. The borrower needs to be employed actively and should hold a valid bank account with a debit card to expect swift approval of his or her loan application.
Convenience – Those days are gone when you had to physically visit a lender in order to present your payday loan application. It is a digital world now and lenders have become savvier. People can now apply for loans online and when they get approved, the loan amount is transmitted to their respective bank accounts. At the time of repayment of the loan amount, money can get deducted automatically from their bank accounts.
Default situations could be handled directly with the lenders –
In case of people losing their jobs
after getting their payday loans approved, there will be definite issues concerning repayment of the loan amount within the stipulated tenure. The best solution is to make it clear to the lenders and show proof of losing your active employment. Lenders will be able to roll over loan amounts and the interest charges to the subsequent month.