Payday Loan

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Payday Loan

Problems never give warning before appearing, So one should always be ready to face problems. But imagine at the month-end, you need urgent money and your salary is also over and you have not done any saving for such a situation, what will you do then, banks offer a payday loan for such a situation. This loan is especially for the employees so that banks can help them in such situations. The payday loan is an unsecured loan which can be availed instantly.

The payday loan was developed keeping the employee in mind as the employee gets every monthly salary so that they can easily repay the loan whenever their salary comes. Banks offer mostly low-interest rate loans to those whose credit scores are good, and those who have low scores are likely to get higher interest rates. The payday loan is also known as early salary loan, small cash loan or instant loan. Banks and NBFCs have not started offering payday loan service yet, due to this, the applicant would have to go to the lenders for the payday loan to avail this loan.

Eligibility criteria for a payday loan:-

  • Applicant should be 18 years old or above
  • Applicant should have Indian citizenship
  • The Applicant must have a current account
  • Customer should be an employee at any company or organization or they should have a regular source of income

Documents required for a payday loan:-

  • Customer should have any identity proof such as aadhar card, PAN card, voter card or driving licence.
  • The borrower should have any proof of residential like a utility bill, aadhar card, driving licence or voter card etc.
  • Applicant should have proof of his/ her age
  • Applicant should have proof of income
  • They should have two passport size photographs

How to apply for a payday loan:-

  • Visit https://www.bankagent.in/
  • Now search for a payday loan
  • Select the bank by which you want to take a loan
  • Now click on the apply now button
  • Fill the form and submit it with the required documents

Platforms by which you can apply for a payday loan:-

  • Rupeelend
  • Faircent
  • India lends
  • Lend box
  • I-lend
  • Loanwalle
  • Myfi
  • Loanbaba

Features and benefits of Payday Loans:-

Here are some benefits and features of the payday loan that you should learn before availing a loan:

  • Due to this loan being an unsecured loan, there is no need to pledge any asset in this loan as security.
  • Customer can avail this loan for immediate and small needs and can easily pay off the borrowed amount.
  • The payday loan tenure ranges between 2 weeks to 4 weeks so that in this duration the applicant’s salary comes and he can easily repay the loan.
  • Lenders do not see credit history and credit score while giving the loan, so people who have credit score can also avail this loan.
  • It has fast and easy processing thats why customers can avail it instantly.
  • The amount under this scheme might be disbursed in the form of cash, a prepaid credit card, or a cheque that will be electronically deposited into the account of the borrower.
  • While giving the loan, the lenders do not check how much the applicant’s salary is and whether or not he will be able to repay the loan, that’s why even those with less salary can avail this loan.
  • When it comes to the requirements for applying for this loan, the lenders generally do not have a very stringent policy regarding the same.

Disadvantages of a payday loan:-

  • This loan is a short term loan due to this it is not suitable for those who need a long term loan.
  • Due to this is an unsecured loan, the lenders take a higher interest rate than those whose credit score is not good.
  • To avail this loan, the candidate should be a regular employee or he should have a regular source of income, that’s why the person who does the part-time job cannot avail this loan.
  • Its process is online so that there are chances of being fraudulent.
  • Customer should have an active current account, if a candidate doesn’t have an active current account then there are high chances of being rejected for the loan.
  • Payday loans can be more expensive than other loans if it is not repaid on time.

 

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