Payday Loans - An Overview

Payday loans in the UK are a type of direct loan that requires absolutely no background verifications or post-dated cheques from the borrowers. There are a number of well-established companies offering diverse types of payday loans in the UK. Each lender requires a procedure to be followed by the borrower; the applicant has to fill an online application form by providing all necessary information to the lender. However, this loan procedure is quite secure and protects all the details that the borrower submits.

Usually, the payday loans do not include any arrangement fees or hidden fees. Typically, the standard payday loan charge is £25 for every £100 borrowed; as there is no hidden fee, the APR rate varies based on the payday loan that the applicant applies for. The UK based payday loan lenders offer a free BACS lasting up to 3 working days and quick fund transfer service to the borrower's personal bank account. Usually, the lenders do not offer a same day fund transfer due to certain reasons. Still, there are few lenders who offer a same day fund transfer only if the borrower has a bank account with the Halifax. In certain cases the fund transfer is not chargeable when you apply before 3.30pm.

Payday loans lenders generally offer a feasible repayment schedule for the borrowers; if you are unable to repay the loan by due date then you can choose the option of deferring the loan, which is also called as rolling over the loan. By doing so, the borrower needs to pay the additional interest charge and one-quarter of the loan balance. In case you pay back the entire loan, your chance to get approved for a similar loan becomes brighter. Application can be made by any of the three means such as through web application, application by phone and by applying directly from the bank. A number of lenders in the UK offer a fully online and no fax loan services for the borrowers. Occasionally, the lenders do certain verification by asking for specific documents including the proof of income.

The major advantage of the payday loan is the low interest rate and fast approval process. This loan is appropriate for any emergency situations, where you need extra cash and your payday is not near. A recent report states that this year the number of people applying for these quick loans across the UK has increased by over 4 times than the numbers observed in last four years. While the demand for such loans is becoming increasingly popular, the number of lenders is also seen increasing hastily with better loan interest rates and repayment offers for the borrowers.

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