Payday loan has many terms, like payroll loan, salary loan, payday cash loan, short term personal loan. A payday loan is a type of personal which help people in emergencies when they need urgent cash. In the beginning, the idea of a payday loan was to return the money on next pay day but now things have changed and lenders understand people’s problems and needs. They have given the option of paying the loan back in installments. It is important for the borrower to have job and monthly income whether he is self-employed or he is working for someone else. Different countries have different conditions and rules and regulations.
People are against this type of loan because it has higher interest rate than any other loan, some lenders were even charging an unreasonable amount of interest rates so authorities decided to fix the maximum interest rates annually. This type of loan was started from the United Kingdom, but now it is getting famous in other countries too, especially in the United States, it has become popular in a very short time. When this type of loan started, people were not very happy about it, they thought the firm, which started it will lose the money. It actually happened at first but as time passed with some changes in the system and with updated security, the founding company succeeded in earning a lot of money.
The interest rate of the loan depends on the amount of loan and the time for which the borrower is taking a loan. The limit of the loan amount is different for every company, some companies give the loan from 100 pounds to 1000 pounds, but there are also some companies like Payday Loans UK which are giving loan from 100 pounds to 5000 pounds. This company is also giving the option of returning the loan in installment. The installment time frame for returning the loan start from 3 months to six months and it also depends on the amount of loan the borrower is taking. There are some conditions for people who want to apply for this type of loan, such as the borrower’s age should be 18 years or more because this is the legal age to work full time in many countries. He should have a full-time job with pay at least 1000 pounds. He should be a resident of the state in which he is applying for the loan. The borrower should have a valid active account which he is using to save paychecks. This loan is an unsecured loan which means that the borrower has no need to submit anything as guarantee and there is no need of documentation or paperwork. The lender is putting his money on risk by trusting people so having conditions is not a bad thing.
In the past, people were used to visiting the lender physically to apply for the loan but know there is no need to go to any place. The borrower can apply for this kind of loan from home if he has an internet connection and laptop. The application process is simple and easy, go to the website and fill the application form given on it. The form will need to be filled with personal details and after submitting the form, the lender verifies the details and he will get back to the borrower.