Payday loans online are a common lending source to receive fast cash at present in the UK. About 2/3rd’s of permanent employees in the country borrow money from short-term UK lending companies every month. To address the increasing demand for this type of loan, many lending companies have started lending money on this short-term basis in various forms with a little higher interest than other forms of lending. Actually, these are not loans though literally they have been known as payday loans. They are more like salary advances with a fee attached to them.
The reasons for a high percentage of citizens of the UK who apply for them vary are, one is they are convenient to apply as well as very fast to receive. Before, and after the receiving of UK loans, the service provided is meticulous and respectable. The lending services of these types of loans protect the borrower’s personal details and confidentiality. Most of these instant loans firms are regulated by such agencies as ccta.co.uk, which stands for the consumer credit trade association. Therefore, many people trust them when they need money and do not consider the high percentage of interest involved with such loans as they will not be able to enjoy such a service else where.
To apply for payday loans online, an individual should be 18 years or above and must be a permanent employees with a steady income over 400 pounds. He or she should also have a valid bank account as well as be a citizen of the UK. The procedure in applying is extremely trustworthy at these short term loans agencies. If a borrower applies online, there is no leakage of personal information and confidentiality is assured since network channels are highly secured with the latest software programs. The information needed includes the borrower’s name, address, income, employment details, account details, country, town etc.
Once submitted, the application is electronically verified and a reply will be sent within minutes. If a borrower is approved for a loan, the money will be transferred to his or her account within hours or within 24 hours the latest. An interest rate of 25 pounds for every 100 pounds is debited from the account of borrowers. When repayment is due the full amount is required together with the relevant fees that were charged. On the other hand, many payday loans companies do not charge any additional fees.
If a borrower is unable to repay on the due date, the lender should be informed outright. Since high-tech cash advance companies are highly educated in their trades, they know how to handle difficult situations and will advice their borrowers of the most appropriate steps to follow. The borrower will most certainly be given another date and a more easy repayment scheme than the first arrangement. Nevertheless, the payday advance should be paid in one instalment on the due date to avoid unnecessary involvement with higher interest rate.
Who does not have a financial crisis and find that they have exhausted every avenue to quick financial help? Nearly every source requires some form of collateral and guarantee to even consider an application. Besides by the time loans are processed the need may not even be there. People borrow money when they have to face urgent financial requirements. These can be some of them… sudden illnesses, accidents, overdue bills, overlapping mortgages, unexpected festivities, and for many more reasons. In the UK, a very large number of lending companies now provide people with payday loans to face such problems. As the procedure of granting loans by these companies are convenient and fast, many employees and steady income earners in a financial crisis are those who apply for these loans. For example, in the UK, an increase of 25% of cash advance receivers were witnessed borrowing in the last year and this figure is increasing considerably in 2011 as well.
To meet the demand many UK and US short-term lending companies are in operation in every state. Most of these companies are online-based companies. However, a high percentage of such companies have brick and mortar offices and provide the conventional loan system as well. The younger generation are seen to be rapidly turning to the Internet when same day loans are required since it is very convenient and fast.
Many of the research done on fast cash loans have revealed disadvantages as well as advantages. The high APR of such loans is one of the highly criticized aspects. In general, 25 pounds is a fee charged for every 100 pounds borrowed. This type of loan is an unsecured short-term loan and must be repaid after 14 days or 31 days. Therefore, APR influence on borrowers is minimal as they have to repay the loan in one go.
Another factor that is often met with criticism is the general hardship status of borrowers who after borrowing at high rates are drawn into a quagmire of constant debt which only keeps snowballing. Critics say, when an individual borrows money through paycheque advance, he or she has to return to the same procedure month after month. That means, they are surrendered to high APR throughout the year. This is an exaggeration and under estimation of lenders of short-term loans. People should know how to repay them on the due date before they take such loans. On the other hand, the position could change in the next month and they would be able to repay their loans very soon with an entirely new income and method.
What ever said and done, small cash loans are here to stay. They provide an appreciable service to the middle class employed people in the UK. The popularity of such loans within a short period such as four years is evidence to this fact. Convenient, speed and availability, along with the shortest repayment system are the hallmarks of the system. No one can deny this in any manner.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk