Sometimes, the salaried people are faced with meeting an urgent expense then and there. Such an expense could be towards repairing a car, avoiding a late payment to escape penalties and paying for a medical treatment. Payday loans can provide the people with instant monetary help within 24 hours, with the loan amount electronically deposited in their bank checking account. These loans, however, are costly also, requiring you to borrow carefully.
The loan amount ranges from £100 to £1500 for a very short period of 14 days. This means that you are supposed to return the loan when your next salary cheque is in your hands. After paying interest charges, the loan can also be rolled over. The sole basis of approval of the loan is that the borrower is a salaried person for past six months and holds a valid bank checking account. Only adult people of 18 years or above are eligible for the loan.
No security is needed by the lenders, and instead only a post-dated cheque of the borrowed amount plus interest payment is sufficient for the lenders to deposit the loan in the borrower's bank account. Approval of the loan is given also without making any credit checks on the borrowers. This implies that even bad credit borrowers are completely at ease despite tags of late payments, defaults and arrears.
However, payday loans have this disadvantage of very expensive interest rate on a smaller borrowed amount for two weeks only. The typical rate may be 30 percent and may go higher in case of the loan extended for couple of weeks. Therefore, it is advisable to repay the loan at the time of getting next salary cheque. You should also look the lenders on internet for locating a deal at comparatively lower rates.