subject: Payday Loans: Fast Cash against the Paycheck of the Next Month [print this page] Payday Loans: Fast Cash against the Paycheck of the Next Month
Paychecks of the loan-seekers are used as collateral in payday loans in Great Britain. Payday loans are advanced by the lending agencies to the applicants against the paychecks that they would receive in the early next month. Hence, this kind of finance has something common with the loans available in the secured variant.
Payday loans are, however, more close to short loans or short term loans by its features. The loan-seekers can secure a small amount only and the amount comes within the range between 100 and 1000. The reimbursement period of this type of loan program is also short. The borrower must clear the loan amount within two to four weeks. The interest rates, on the other hand, are comparatively high.
The borrower should satisfy the following condition to be entitled for payday loans:
a) He must be over 18.
b) The citizen of United Kingdom can only apply for this kind of loan program.
c) The applicant must have a monthly earning of about 1000.
d) He must be employed in any legal establishment.
e) He must possess a valid and active savings account.
The lender immediately sends the loan amount to the savings account of the loan-seeker after he approves the respective loan application. Yes, the payment of loan is very fast. The loan-seeker can apply online which is easy, comfortable and time-saving. Again, the lenders do not ask the borrower seeking payday loans to fax his personal information. This is not enough. The lender does not bother to check the credit report of the applicant.
There are, still, some factors for which the borrower should take care from day one. The interest rates are high and repayment duration is short. The borrower can approach the lender to extend the repayment period. The lender holds the right to oblige him. The borrower should not take such a move. Nor should he even go for securing finance from another source before the reimbursement for the current loan is completed. He will, actually, put himself in greater financial trouble if he discards these suggestions.
