During month ends, a lot of people suffer from low cash and the burden of bills on their heads. Often your friends might say I need money now while suffering from the same issue and might be looking forward to supporting from your side. For such people, it is better to go for a payday loan as it can easily be availed and used in a small amount of time. Payday loans come under short term credit and they usually last for a month or two.
Especially among youngsters, there is a rapid shift towards using payday loans instead of credit cards as it helps in controlling expenses while having affordable interest rates and lesser chances of penalty. Another major reason behind the popularity of payday loans is the hassle-free nature of the loan availing process through which you can receive the loan amount within a single day of application.
A few things to know about payday loansPayday loans offer a lot of features due to which they are highly demanded among the working-class people. Due to being easy to avail and involving less hectic paper works, people usually get them to pay their credit card and other expenses which might get them penalized if left unpaid.
The following are some things about payday loans that you should know.
- Under these plans, the customer will be able to avail of a small amount of credit based on their earning with a small term return period.
- Payday loans are generally credited to your accounts within a day and do not require a long acceptance process.
- There is no involvement of collateral or guarantor in processing your loan and you will get the loan based on your earning and requirement.
- Most of the processes involved in the acceptance of this loan are done through online means which makes it easier to avail loans in cases of emergency.
- If you are short on finances to pay your credit card bills and the last date is near, you will easily be able to directly use this loan to pay the outstanding credit card bills to avoid penalties.
- People who have a bad credit score or have lost their credit reports in the past can also easily avail these loans without any issue.
- You can easily apply for these loans even if you are still repaying multiple active loans.
- You can apply for this loan through both online and offline methods without any issue.
EligibilityAlthough there is no need for a good credit score or a lot of paperwork for availing these loans, there are still a few parameters based on which you will be eligible for getting the loan.
The following are the eligibility criteria for availing payday loans:
- Payday loans are only provided to workers with permanent citizenship of the nation where they are trying to avail of the loan. You might also need a few minor documents like pay slip, passbook statement, photos and proof of identity.
- You must be 18 years or older and should have proof of regular income and proof of employment along with an active current account in a recognized bank.
- You must have an age proof along with an active phone number so that you can be contacted for the proceedings.
AdvantagesThese loans offer you tons of advantages over other sources of credits which have made it a popular choice for raising finances in case of emergency. The following are some of the most sought after advantages that it provides:
Cost-effectiveness and ease of applicationAlthough the overall interest on these loans is a bit higher than other types of loans, they can be cheaper in the long term if you pay it back on time. As they are availed for a very short term, there is not a large amount of interest buildup that you will need to worry about and the fact that you won’t require running here and there for availing this loan saves a lot of money as well.
Above all, these loans are easy to apply for due to fewer paper formalities and high-speed loan approval. You can easily apply for these loans through online portals or by visiting a local vendor.
Easier and flexible repayment optionPayday loans offer unparalleled flexibility and ease when it comes to repaying the loan amount. One of the best things is that you won’t have to pay any extra fee even if you are paying the loan amount before the due date. This is not the case in normal loans as you will have to pay some percentage of the loan as a fee for such repayment.
Also, you will be able to pay in through cheque, prepaid credit cards and even cash depending on the facility that is available to you. The general repayment period is 1-2 months which makes it easy to repay as only small amounts are provided under these loans.
Flexible amount of loan with freedom of usage along with special facilitiesThe major advantage of these loans is that they offer flexible amounts of money that will be dependent upon your monthly income. Also, just like any other loan, you will be able to spend it on anything you like e.g. credit card bills, electricity bills, EMI, etc.
A major factor behind its success is that you can avail them in the form of a credit line through which you will be allowed to withdraw a specific amount of money. The limit is replenished upon repayment of previous dues.
Great customer supportThe services that offer payday loans usually maintain an efficient and well-trained support staff to assist their customers. Due to this, most of the issues that arise while availing these loans are easily resolved and customers can attain all the information they want. Even after the loan is issued, they will keep in touch with you to ensure that you are not facing any problem regarding their services.
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