Cheque Book Loans – Get A Cash Advantage From Your Cheque
Cheque Book Loans Get A Cash Advantage From Your Cheque
There are various short term loans available in the market. These help a person in coming out from credit crunch. But one thing that is required in all such loans is the lengthy paperwork involved in taking such loans. To avoid such problems, now lenders have introduced cheque book loans.
Cheque book loans are the short term loans granted against the post dated cheque of the borrower. As the cheque is submitted to the lender, it acts as collateral. It gives these loans an advantage of secured loans. They have low rate of interest and also require the least formalities. These are also granted instantly without any waste of time.
The amount of such loans is generally very small. It may range from 100 to 1500. The loan amount is sanctioned after keeping the post dated cheque of the borrower. This cheque contains the principal amount with interest on it. It gives an assurance of timely repayment to the lender, if the borrower does not repay the loan, then he may deposit the cheque in the bank and get his loan money back.
Presently such loans are granted to the people of UK only. The age of an applicant should not be less than 18 years. Borrower should be working somewhere earning a regular income.
These loans have a disadvantage too. The rate of interest applicable on such loans is higher than the normal bank rate. Lenders charge high APR on such loans that may prove to be a burden on borrower if he/she does not make payments on time.
So, before applying for such loans it is recommended to do a market research and read all terms and conditions of the lender. It will help you in understanding the loan and will be beneficial in long run.