Last Updated on March 9, 2021
In times of economic hardships, having some ready cash is a major priority for many individuals and families. People work hard but they always find themselves with gaps in their budgets.
One of the main reasons people lack financial stability is the negative effect on the global economy caused by the coronavirus pandemic. People have to look for an alternative to fill their budget gaps and one of the simplest alternatives is to take online payday loans.
What is a payday loan?
Generally, people take loans to help them meet an urgent need which can be business-related, travel, shopping, fee, medical, or development-related. There are different types of loans that any eligible person can apply for, including personal loans, business loans, credit cards, and lines of credit.
To apply for a bank loan, you must have an active account with them and fulfill several requirements like guarantors, security, etc. The best option to skip the difficult bank requirements is a payday loan.
A payday loan is a small loan given to the borrower on the promise that the borrower will pay within 30 days. A few years back, payday loans were tied to the employees’ next payment day but today, the restrictions have been removed and any person earning an income can apply. The loans are applied for from the lender’s office but the most common types are online payday loans.
Who gives payday loans?
In the UK, many businesses give payday loans. The loan lenders are different too and the amount they lend differs depending on how established the lender is. The lenders can vary from direct lenders to offshore lenders, state-regulated lenders, lead generators, and credit access businesses. They are well distributed in all districts and borrowers can access them online or visit their physical office.
Who gets payday loans?
A few years ago, payday loans were strictly for the employed. Today, the business has been liberalized and anyone can access the loan as long as they have an income. Income sources can vary and you can apply if you are employed on a full-time basis or you are a casual laborer, a nanny, a student receiving support from parents/guardian, a freelancer, gardener, cab-driver, and so on. The only condition is that you must pay within your next pay which must be within 30 days unless under special arrangements.
Why should you take a payday loan?
The financial institutions offer various types of loans to their clients and give them repayment periods ranging from six months to 5 years or more. Before you apply for the loan, there are several requirements you must fulfill. The bank will check your credit score and if it’s not attractive, your loan application will be rejected.
You must also have a current account with your bank and it must be in operation for at least six months. To apply for the loan, you need to take several days off from work so that you can visit the bank and fill the loan application forms.
The bank’s loan officer might demand to come to your house, business, or workplace to see if you are creditworthy and check your collateral. The next person will be the bank’s lawyer who will again investigate if your records are clean before your loan is approved.
The process can take up to 14 days for approval, depending on your bank and how many applications are on their desk.
Imagine you wanted the loan because of a medical emergency or maybe you needed to pay your kid’s college fees that evening. You had no money to commute to work the next day or you needed to pay for some urgent bill. You would be stuck in disbelief at the turn of events and unsure of what to do next.
This is one major reason why you may want to apply for a payday loan. With a payday loan, you are not required to have an account with the lender. You do not need all the paperwork or a loan officer visiting your business, house, or place of work. You will not be asked to provide stamps from a lawyer or be told to wait for 14 days.
Payday loans are processed the same day you apply and maybe to your surprise, you can get the loan within a few minutes after you complete your application process. The application process takes only a few minutes and you don’t have to visit the physical location of the lender.
The next time you have a financial need, do not follow a process that will keep you waiting up to 14 days. Instead, go online and apply for a payday loan to overcome the financial emergency you are in.