These loans are for short term as reflected by the term payday. What this means is that the borrower has to repay the loan along with the interest that accrues on the principal amount on the date of his next pay day. In fact, these loans are regarded as the best solution to short term requirements of cash as they are easily available to all people irrespective of their credit scores. While millions of people have already availed these fast and efficient pay day loans several times, there are many who have heard a lot about these loans, but do not know how the system works and the procedure behind instant payday loans.
The process of applying and obtaining funds in one’s account has been made so easy and simplified to such an extent that it is easier to get the loan than to take out your car from your garage and get through the heavy traffic to reach your office. You are spared the embarrassment of having to ask for money in person as there is no one you are required to talk to. It is as easy as entering your personal details on the website of a lender and wait for the money to be deposited in your bank account. Here is how the system behind payday loans works.
- Log on to the website of the lender and enter your personal details such as name, date of birth, address, telephone number, and of course your bank account number. This is the account in which your salary check gets deposited. Press ‘Apply Now’ and you are done with the process.
- Wait till the lender gets your details verified from his sources. As soon as the verification is over and the head office approves your loan, the money asked of you is deposited in your bank account. In many cases, the money is deposited within 24 hours of application.
- You have the money that you can use according to your requirement.
- Make arrangements to repay the loan along with the interest accrued on your next payday.
The eligibility criteria for getting a payday loan are so easy that virtually everyone can apply for these loans. If you are over the age of 18, doing a service and receiving salary through check in a bank account in your name, you are eligible to get a loan.
Quick loans are provided by private lenders as banks do not entertain applications for short term loans of small amounts of money. Further, as lenders do not ask for any collateral or guarantor, the loans are unsecured in nature. This is the reason why lenders charge a higher rate of interest than banks.
