Doorstep loans are short term finances that are designed to suit the borrowers need
. They are of the short term variety. These advances are given to the borrower, at his doorstep, or are transferred to his bank account. Another advantage of this credit is the absence of credit check.
These finances can be used to fulfill any need of the borrower. E.g. To pay outstanding bills and to pay any repairs. Doorstep loans are similar to payday loans. They are short term credits. The credit lent has to be repaid with the next pay check.
These finances help to solve the immediate monetary crisis of the borrower. Lenders offer credit ranging from 50- 500 for a period ranging from 1- 30days. The lenders decide the credit depending upon the borrowers employment condition and his financial ability. These advances carry a high rate of interest as compared to other loans. The lender is at a risk to lend finance as there is no security kept. If the borrower defaults in payment, the lender has no means of recovering the amount from him.
The Advantages are as follows;
-These advances do not require any security to be kept against the loan amount.
-These advances can be repaid when the next pay check arrives.
-These finances are convenient as they are available at the borrowers doorstep.
The Disadvantages are as follows;
-The interest rates are high as compared to other finances.
Eligibility criteria are as follows;
-The applicant must be over 18years of age.
-The applicant must have an active bank account.
-The applicant must be employed, and must be drawing a monthly salary of more than 1000 per month.