Payday Loans are the loans which have the total loan repayment schedule on the next payday of the loan applicant. The payday loans are directly based on the wages of the applicant and hence lenders check the bank statements for salary credits in the past months. You can get payday loans directly from financing institutions and money lenders but in the recent past you have another simpler and easier option, you can get payday loans online. There are exclusive online websites which facilitate anyone with proper employment and bank account to avail payday loans online. You have to upload the online application forms with required details and enclosures; then if you are eligible you would have the money in your account at your disposal within one hour. Payday loans can be short term loans called as instant payday loans which are to be repaid within the next payday of the loan applicant; and they can also be 12 month payday loans where the borrower is indebted to repay the loan in 12 subsequent months. Lately automated electronic payment procedures from the salary credit of the borrower are also followed to enhance hassle free loan repayments. Both instant payday loans and 12 month payday loans can be applied via payday loans online websites.
Eligibility for Payday Loans: There are three criteria that are taken into account while approving payday loans. The applicant should be –
- UK citizen or resident of eighteen years and over.
- Salaried employee with every month salary credit.
- Active bank account holder to credit the loan amount.
Instant Payday Loans: Instant payday loans are short term loans which are in general used to bear unexpected and urgent expenses. For instance, when you find a very good household product on a discount sale which you do not want to miss because your payday is a bit away from the discount sale date, you can use online facilities to avail instant payday loans, buy the product and then pay it up from your next pay cheque. People who often avail these loans use the loan money for travels and tours during holiday seasons. The borrowers are asked to submit to the lenders a post dated cheque for the whole loan amount, which is held as an assurance.
12 Month Payday Loans: Payday loans need not be for just under a month’s time, it can also be for a longer term of 12 months or one year. Here the repayment is not in one shot in the next salary or wage but is repaid in twelve installments. The loan applicant is supposed to issue twelve post dated cheques for each month dated on the same day as the payday. In case the cheque is dishonoured, the applicant is asked to pay the dues with additional penalty. To avoid this money lenders arrange for automated electronic money transfer for 12 months on the salary credit dates of the loan applicant. This is the safest, easiest and most reliable mode of loan repayment.