A payday loan refers to a short-term loan, which is due on the next payday or the day you receive your salary. The word short-term means the loan is given for a few weeks. Payday loans are generally available online, through various websites and mobile apps. These loans are easy to avail and require minimal documentation.
The loan application is processed swiftly and the balance is transferred directly to the bank account of the borrower. Payday loans help avail funds, in times of cash crunch or financial emergencies. The rate of interest on these loans is quite high and must be repaid within the requisite time, to avoid falling into a debt trap.
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Listed below are some of the benefits of availing a payday loan:
Payday Loans are Fast and convenient: Application for payday loans are approved, instantly. The application process is simple and hassle-free, as it’s completely online. The applicant must provide the necessary documents for the verification. The funds are transferred on the same day, directly to the applicant’s bank account.
Simple Request Process: Applying for a personal loan is really easy. However, the applicant must fulfill the eligibility criteria required to avail the loans. The applicant must have stable income and must never have been a defaulter. Generally, these lenders do not check the credit score of the borrowers. However, the borrower must provide details of his employment like the company he works for, his salary; email ID of the company and so on.
Low or No Credit Score: An applicant does not need a good credit score, to qualify for a payday loan. The process of availing payday loans is different from availing traditional loans. Unlike bank loans, people with low credit scores also avail payday loans.
See Also: Payday Loan with Bad Credit
Quick Processing Time: Payday loans are processed and sanctioned within a day. Online loan aggregators provide quick loans at an attractive interest rate to remain competitive. The loans are approved quickly. Therefore, you do not have to go through the hassles of waiting for a long time to get your loans sanctioned.
Convenient Operating Hours: These loan aggregators provide a dedicated 24 hours of customer service to customers. So, you can easily contact them for any assistance. A user can raise a loan request, ask for guidance on initiating the loan, lodge a complaint on services or provide feedback 24 hours a day. As the process is completely online, the user can make use of several other features like online chats on these websites for further assistance.
Other Advantages of Cash Advance Loans: A payday loan is a quick and hassle-free way of availing funds in an emergency. Listed below are a few other advantages of payday loans:
Short-Term Loan Period: Payday loans are sanctioned for a short period of time. The repayment date is the day you receive your salary. These are small loans provided for a very short time. The amount you qualify for is determined based on your income.
Save on Late Fees: Payday loans are availed only when you are in urgent need of cash. Make repayments in time to avoid any late fees. A payday loan can help deal with financial obligations and you enjoy a stress-free life. As the amount sanctioned is based on your income, you can pay the loan as soon as you receive the salary.
Protect and Build Your Credit Score: Sanctioning of payday loans doesn’t depend on credit score. So, these loans not only come in handy during emergencies, but don’t impact credit score.
Fewer Loan Restrictions: A borrower can avail a payday loan and use it for just about any purpose. You do not need to explain the purpose of availing the loan and these loans are highly flexible. You can use it to fund a purchase, to manage a cash crunch or to meet family emergencies.
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