subject: What Are Pay Day Loans? [print this page] Payday loans are a form of short term borrowing. They are mainly secured by providing a post-dated check to which the payday loan provider will withdraw when the loan becomes due. Another form of security that is used is where the company is authorised to withdraw directly from the account using either your credit or debit card. These loans are mostly for a period of anywhere less than 30 days. You are usually expected to pay it on your payday. Once you apply for one of this loans and are approved it usually take a period of less than twenty fours hours for you to have the money. Depending on where the loan application was made it can either be given to you cash or can be sent directly to your bank account.
The cost
The interest on these loans varies from one company to another. The interest is usually quoted as a pound value to every one hundred pounds borrowed. This rate varies from around fifteen pounds to around thirty pounds. It is a requirement by the law in the U.K. that these companies are required to state their interest in terms of annual percentage rate also known as APR. This rates range from about 400% to about 4000%.
Providers
There are a growing number of companies that one can go to in order to take out the loans. The largest of this is wonga loans which is an UK based company. It provides the loans through there website. This is followed by Mem Consumer Finance which is also the largest internet payday loan provider. Other top providers include Cheque Centres as well as one stop money shops.
Finally...
Payday loans industry is a growing sector in the U.K. due to their need of minimal requirements. The only requirements for one to qualify for a payday loan may include you having to be over eighteen years. You also need to be employed or you own an enterprise. Finally regulations in the U.K. make it necessary for you to own a current account or a savings account. This account needs to be valid. These requirements may vary from provider to provider. There are no credit checks involved and most lenders can have the cash in your bank account within 1 hour.
