Definition
By definition, payday loans are
actually an unsecured type of loan. These are lent for a short period of time
and are lent in smaller amounts. These mortgages have the salaried class as
their basic and most important target audience. The main reason is, perhaps,
that the salaried class is the one that frequently falls prey to urgent and
sudden financial requirements, arising especially when there is neither pay nor
any savings. These loans are supposed to be paid back through the paycheck that
follows right after the borrowing of this loan. That is why; these have been
given the name of Payday, cash advance, advance pay etc.
Basics
Because payday mortgages are
unsecured loans, it should be clear that these come with a higher interest
rate. These financing are lent for a time period starting from two weeks and
going to a month at maximum. The amount that you can borrow through this kind
of loan ranges from £200 to £1500. You are supposed to pay this loan back with
your next paycheck. If you are unable to pay the check amount on the due date,
you can get it rolled over as well. But, mind that it comes with even higher
interest rate.
Application process
Payday financing are very convenient
to avail. All you are required to do is to apply and you can get it approved
within the time span of twenty four hours. There are no really strict rules to
follow in this regard. You are supposed to be eighteen years and above, have a
secured job and an active bank account in your hand. That is all that is
required to apply for this type of loan. And, if you are going for the online
application process, you can get it approved even faster. As soon as the
application is approved, the loan amount is transferred right into your
account.
Payday financing really turn out to
be a helping hand whenever there is a sudden financial need. You can take help
from these and then can repay these from your next paycheck. But, remember
never to use these for extravagant purposes. These are to be used only, and
only, in a severe kind of financial emergency when there is no other way out.
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