If you have a bill to pay urgently and don’t have the cash, if you have a festival coming up and expect added expenses, if you need cash urgently for any other reason, an online cash advance loan is the answer for you. These loans are relatively easy to obtain, they are hassle free, you receive the loan speedily and you can rely on your next pay cheque to pay it back.
A payday loan is a short term loan given against the value of your next pay cheque. The value of the payday loan is usually a relatively small amount that traditionally must be repaid when you receive your pay cheque. There are some payday lenders however, that offer the option of paying the loan in instalments or after a lengthier period of time. A payday loan may be obtained in person from a lender or alternatively, it can be obtained by applying for it online from a bank or institution that caters to these loans.
If the loan is being secured from a lender in person, the borrower is required to meet the lender and sometimes provide documentary proof of eligibility. The borrower must be a major ad must be under regular employment with a guaranteed salary. Upon receipt and verification of the documents, the lender will provide the agreed upon sum. The payment and interest rates may vary from a nominal amount to a larger percentage depending on the sum of the loan and the urgency. The loan must be repaid in the agreed upon time limit, usually on the subsequent payday.
In the case of online loan applications, the borrower is required to fill in an online application form that is verified and the required sum is then transferred directly to the borrower’s bank account. Depending on the lender, the borrower may have to fax the relevant documentation so as to be eligible for the loan. There is also the option of applying for the loan through an intermediary who analyse the requirement and then provide the borrower with the best possible lender option.
Cash loans are best used when there is an urgent requirement for a small amount of cash. These loans are easily acquired and also easily paid off. They are relatively hassle free and also quite flexible. Especially in online applications, the process may be very fast and may take as less as 2 – 3 hours for the transaction to be complete. The repayment of the loans is also usually flexible in some cases. However, this loan may also have its drawbacks. The payday loans have been specifically criticized for the collection practices and the financial drain that they result in. The loan may not be the ideal option for low income communities as it could generate a vicious cycle of borrowing and lending.
It is therefore advisable that a prospective borrower analyses all the available options before settling on a particular type of loan or even a particular lender.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk