The working class people are plagued with many financial crises
. They have many needs that are unfulfilled. Their needs cannot be met until the next payday. But there are a few expenses that cannot be postponed until the next payday Thus payday loan comes to the rescue.
These advances provide fiscal aid until the next payday. They are short term advances. They are to be repaid when the next salary arrives.
The lender decides the amount of advance to be sanctioned. He makes this decision on the basis of the borrowers repayment ability and credibility. The standard amount sanctioned ranges from 80 to 1500, with a repayment term of 1 to 30 days.
Advantages:
The advanced money is transferred in to the borrowers account within a short period. Applicants who have bad credit history are also granted credit. Their previous credit history is not considered. The sanctioned finance can be used in any manner that suites the borrower. There are no hidden costs which are added later on .The loan is given on the on the personal guarantee of the applicant. No other documentation is required.
Disadvantages:
These advances have a high rate of interest as compared to other finances. If the money is not repaid on time, heavy penalties charged and the financial standing is negatively affected. The credit sanctioned is smaller as compared to other loans.
Eligibility criteria;
The applicant must have permanent citizenship of U.K.
He must have completed 18 years of age.
He must have a stable job at any company and must have a regular monthly salary.
He must also have an active bank account.
He must have a monthly income of over 1000 per month.