Payday Loans & Its Benefit and APR

Payday Loans & Its Benefit and APR

In a more simplified language, any person who borrows a sum of money or an amount from the lender and agrees or promises to repay the sum of money within a specified time period is called as a person taking loan. A loan consists of 3 important things- principal amount, interest, fees and ad-on charges. However, the payday loan which is given on the same day is different and it has a single repayment method which comprises of fees, interest and full loan amount. In a payday loan, the lender offers the decision of giving the loan at an instance and the best part is that the amount is deposited in one day. Another best part you will know about the payday loan is that the lenders are regulated and they keep their fees low, so that taking loan for people at the time of emergency becomes easy and affordable.

Option for Payday Loans –

One of the best available options where you can take the payday loans easily and get good lenders is Slick cash loan options. Besides that, the payday loans are one such loan that can also be called as an emergency loan. Different forms of emergencies can happen like a breakdown of the car and its repair, medical emergency, utility service payments and so on. So, there can be several reasons that forces people to take an emergency loan. Other reasons why people switch to the payday loans are as follows –

  • People do not want to get embarrassed to ask loan from kith and kin.
  • Due to bad credit history the regular personal loan cannot be applied as the banks may not give loan
  • Utmost requirement of cash
  • People do not want to use credit card cash advance option

Benefits of Payday Loans –

One of the benefits of the payday loan is that you can get the loans easily and the cash gets deposited in one single day. So, one advantage is that there is no need to wait for long period of approval or money to get deposited or for lengthy paperwork to finish. Also, there is no hard credit check in the payday loans. It is a kind of loan that is given for a short span of time and requires no hard credit checking. The lenders will mostly check your capacity to pay the loan amount i.e. the present creditworthiness and they do not waste time checking your past credit history.

Payday Loans & APR –

APR in the payday loans is much higher compared to that of the traditional banks. So, here you get a good reason to pay off the loan in time and avoid any extra interest rate charges. Eligibility for the payday loans is that the borrower should apply before the cut-off time. Cut-off time are the most important ones. For many lenders the cut-off time is 12 A.M. If you apply after 12 A.M., then the funds will get deposited in the next business day. Another rule that you should be aware of is that banks do not transfer the cash after 5P.M. and on weekends and bank holidays. So, if you have applied on weekend then you will get the money by next business day.

Category Finance

Multimag Comments

We love comments
No Comments Yet! You can be first to comment this post!