Payday loans are short-term loans. The interest rate for this kind of loan is high compared to personal loans. As per new regulations of the above said loans, lenders check before borrowing whether the borrowers can repay the money on-time. Since it is a short-term loan, the repayment time is 45 days or less. Before opting for this loan, you should know about its advantages and disadvantages. You can get it easily but it involves high rate of interest. Therefore, to avoid debt burden, you should handle loan repayment on time. The following part of the article would take you through some pros and cons of the above loans.
What Is The Utility Of The Above Mentioned Loans?
1.Get Instant Loan
Starting from application to approval, it is a quick process with instant transfer of money in the linked account. The process can take 24 hours or less to respond.
2.No Need Of Maintaining Good Credit Score
Lenders do not consider credit score when giving the above said loan. The credit history does not play any role in getting such loans.
3.Convenient
This loan is extremely easy to get as the formalities can be done online. You can either opt for direct transfer into your account or accept cheque.
4.Loan Amount Depends On Income
In regard to the above type of loans, you can borrow only a percentage of your monthly income. So, this helps to control irrational borrowing of this type of loans.
5.No Involvement Of Collateral Security
In this loan, you do not have to provide collateral security. Though the interest rate is higher, but you do not have to risk your proper including valuable assets until you repay the loan.
What Are The Requirements To Get Payday Loans?
The above said loans are also known as cash advances or high-interest loans. Here, you get the funds on a post-dated check. You can get these loans in quick time with fewer prerequisites to get it. So, when not sure whether you can meet the requirements or not, it is better that you go through the following qualifications.
1.You should meet minimum age requirement of 18 years in your current state to get this loan
2.You should have government issued photo identity proof such as Aadhaar card, voter ID card and the like.
3.You must have active bank account to receive the loan amount.
4.Active contact details to link with the loan details.
5.To get payday loans, you should have stable source of income
However, when you are providing income details, you have to provide your income type, pay cycle frequency. Depending on this, you will get the loan. So, income verification and bank account verification is carried out thoroughly.