Same day loans are quick loans disbursed to the applicant immediately after applying. This personal loan is approved at a higher rate of interest without the need for any collateral. This payday loan is approved purely based on the borrowers’ past credit history and income proof. This payday loan is sanctioned for only a short-term period say six or a maximum one-year period. The main criteria for a lender for sanctioning the same day loan are based on the salary slip of the consumer. Usually, the rate of interest of the applied loan might increase if the credit history of the person is not good. Nowadays, governments of many countries have framed strict laws on loan disbursal and remittance procedures.
Why same day loan is unsecured type?
The consumer or the borrower who gets the loan from a lender does not need any collateral for the sanctioning of the loan. Hence, it comes under the unsecured loan type. Due to the higher rate of interest this personal loan is also called a predatory loan. Even some lenders charge additional fees indirectly from the borrower. The borrower might not consider the severity of the fee due to his urgency at the time of the loan application. So, the borrower has to be very alert and agile while choosing the lender who is genuine and legal.
Who are these payday loan lenders?
Payday or personal loan lenders are located in any place that is accessible to borrowers easily. These lenders are ordinary merchants who can approve small loan amount at the earliest. There are also many online lenders available for the consumers in plenty. These merchants require paystubs of the loan applicant along with their identity proof for sanctioning the loan. The loan approval authority is purely on the lenders’ hand and none can influence them.
What is the procedure for the payday loan process?
A consumer may need quick or urgent money for the following requirements. The following are the urgent needs of a borrower
The above requirements of a consumer force him to get a quick loan from a lender either offline or online. The consumer has to fill the loan application by filling in the details like name, age, address, and personal bank details and has to upload the form online. He also must attach his income proof along with his address details. The uploaded loan application is verified by the lender on another side. The lender checks the details of the application thoroughly before sanctioning. If the lender feels satisfied with the loan applicant’s details and formalities he will deposit the loan amount to the personal account of the borrower. The whole process takes only several minutes or a few hours for applying and sanctioning. The borrower can get the loan amount in his account the same day of applying. This is very fast and legit in all aspects.
Tips to consumers
The consumers have to possess a good credit history for a good payday loan
Check the profile of the lender before applying