Payday loans UK: what makes it different from other loans?

We plan for all those things, which are expected in the future; unfortunately the life doesn’t follow a fixed track. Our life is full of surprises, but what is important is our preparation to face the odd ones. It looks quite awkward discussing these philosophical aspects since we are talking in terms of financial prospective, but it’s exactly not so.

No matter how strong is your financial background, you are expected to face some challenges. These situations can be as bad as managing funds within a day or two or something like paying a bill etc. These are the unfavorable circumstances where payday cash loans come into picture. Payday cash loan is meant to meet the inevitable need of money. These loans are sanctioned within 24 hours or for the maximum two days after application. Payday cash loan proves its importance in situations like paying existing bills, avoiding the cheque bounce, meeting some deadlines etc.

Payday Loans UK: Eligibility
Payday cash loan is quite suitable for the working class, since the loan is granted for a shorter period. It is by far one of the most expansive loans, as seen from the point of view of APR. As far as the interest rate is concerned, it looks amazingly high and can even touch the mark of 400%, but this is never going to be a worrying issue. A lot of factors are responsible for the huge interest rate. First of all, the payday cash is to be paid off in a week or two, hence the lenders try to fetch maximum profit out of it. Another important factor may be that the loan amount sanctioned to the borrower is well within £ 1000, which can manage a meager profit if given on normal APR.

A borrower can get a loan up to £ 500 very easily. There may be certain criterion of eligibility, which, of course, varies from lender to lender. The borrower must be a UK citizen with minimum 18 years of age, earning at least £ 1000 a month in recent period. For verifying this very fact, the lenders may demand for recent pay statement from the customer. The repayment period for a payday cash loan is generally 7-15 days. If not paid in the due period, the borrower can settle the loan in the next payday week by paying off some extra fee apart from the interest for that period.

Payday Cash Loans: Key Features
One of the major advantages of a payday cash loan is saving of your precious time in the paper formalities. The loan amount is credited to your bank account within 24 hours from the time of application. It is advised to apply for the payday cash loan in the weekdays from Monday to Thursday, which in turn makes the loan available in the same payday week.

It’s our nature to look for the cheapest loan available, but every time what looks cheap is not that cheaper.