Life is unpredictable. One doesn’t know what may come next. Payday loans are here to rescue people from such situations.
What are payday loans?
Payday loans are short term loans offered when there are some unforeseen circumstances. For example, if there is a bill to be paid or some other monetary demand, which has to be met before the arrival of the payday, such loans offer help to do so. However the amount given as loan is comparatively smaller to usual loans and the period given for returning the money also is shorter.
How do these loans work?
In order to get a payday loan one has to write a check for the amount one is borrowing and also some fee. The check might be left with the lender and they cash it once you are ready to repay. However, these rules differ from place to place. Sometimes these loans are marketed as no credit check loans, which means one does not need good credit scores or even a credit history to get these loans.
However, one needs to provide details of income and bank account while applying for payday loans. But getting approval for payday loans is much easier when compared to the other traditional set of loans. Hence, when any financial difficulty arrives, people opt for such loans.Payday loans are also available within 24 hours. icash could provide one with more information.
How are payday loans different from other personal loans?
Payday loans are completely different from personal loans. Firstly, the time frame completely varies. In payday loans the repayment term is due the next pay day while in personal loan it extends to years. The interest rate is also different. Interest rate for payday loans is more than personal loans.
What is the importance of payday loans?
Payday loans are very popular because it saves one from immediate and important monetary requirements. If one is short of money by the end of the month and there is an utter necessity to give money for some important work as immediately as possible, payday loans allow one to do so. Payday loans are also available online.
How do payday loans work in India?
Payday loans are also called as short term loans, quick cash loans, instant personal loans or high cost loans in India. Payday loans are usually provided by small credit merchants. Payday loans are also available online where some online vendors provide loans. Some examples are Rupeelend, a firm in Delhi and Lonababa an online firm.
What is the future of payday loans?
In the last ten years payday loans have seen tremendous and exponential growth. According to Stephens Inc., an investment firm, there are approximately 24,200 payday loan outlets in the United States alone. This industry is generating $47 billion in annual fees, including $5.65 billion (or 14%) online. According to sources at the Arizona Department of Financial Institutions, there are 98 different payday loan companies operating 720 branches throughout that state alone.