Cheaper Finance Made Possible On Opting For Low Interest Personal Loans
One may need immediate finance to clear emergency medical bills
, electricity bills, extremely required celebration parties and outings and must do house repairs etc. There are certain financial institutions in each nearby are which provides low interest personal loans to needy clients secured against their pay check. This loan is usually small and is paid in single or easy installments on pay date.Such small amount loans are for a short period. Due to short duration, pay day loans have become very popular as interest is charged on the principal amount, not on the compounded amount. Individual financial companies have their own criterion of awarding loans and charging interest rates. In most of the countries, legislation is available to control the rate of interest on pay day loans.
The client must have attained the age of 18. Bank statement or monthly pay slip is the basis of sanctioning the loan amount. It is also verified how much loan is pending with the client and what is his/her credit history. In the competitive business market this criterion of credit history is generally ignored by a number of companies. Though loaning amount may differ as per your requirements, yet its upper limit is $ 1000 in most of the cases. It is the quickest form of loaning in less interest, available in just one hour.
Such low interest personal loans are cheaper than credit cards and therefore they are of utmost benefits in emergencies like avoiding overdraft fees, bouncing of checks, late fees and payment of rents and bills on which surcharge is levied for late payment. Privacy and safety of clients is maintained and cash is received in just one hour. Interest rate charged is slightly higher than the standard loans which are for longer periods.
Pay day loans can be applied on-line on a small Performa designed by each company as per their legislations. Approval in a short time and thereafter immediate transfer of money electronically to borrower's account is done. Loan repayment including interest is withdrawn automatically on pay date from borrower's account leaving no chance of check bouncing.
The system of such loans has been in heavy criticism since long. It lures the low income group people to dream of consumer items in higher interest rates as compared to standard loans, thus depleting their assets. Sometimes these poor borrowers take another loan to clear off old loan and thus they are always in grip of lenders.
One must asses his/her own capacity to repay the loan and must not make it a habit. Always use this tool of personal loaning for emergency requirements on basic necessities rather than to compete with affluent society. Though this practice of loaning is very common in almost all the societies but it is very controversial and uncontrolled by suitable legislation.
by: Joe Sand