All About Payday Advance Loans

Payday loan companies and people taking payday loans are increasing day by day. It shows the popularity of payday loans. What is a payday loan? Are you a person taking payday loan for the first time? You have to read this article to get some idea about this short time cash advances.

Definition

Payday loan is a short time cash advance available to people who are in urgency of money to fulfill their emergency needs until their payday comes. This is a small amount loan ranging from 80 to 800 GBP. Usual term of this loan is 2 to 4 weeks. Cash Advance, Paycheck loan, Check loans, and Payroll advance loans are some other names given to payday loans. You have to pay back the amount once you get your paycheck. If you are not able to pay back the amount on due date, you can apply for a roll over. This will add extra fee to your loan amount. In normal cases the lender will charge you interest rate of 25% of the amount you borrowed.


Why you need a loan?

You might be getting wages on the first week of each month. By the last week of the month your pocket will get dried up. What will be the solution if you face with an urgent need? One option is borrowing from friends or relatives. This option is not practical all the time. Payday loan companies are your online friends. But make sure you are really in an emergency and need cash urgently before taking a payday loan. You can go to a lender directly or apply from the privacy of your home.

What are the criteria to qualify for a cash advance?

1) You must have a regular source of income. The lender will ask for your employment details. Payday loans are not available to unemployed people. You must have the eligibility to repay the amount.

2) You must have a checking account and your salary should be directly credited to that account.

3) Must be a UK resident and should be at least 18 years of age.

4) monthly income should be at least £750/month