What happens if I default my payday short term loan?
What is a pay day loan?
A payday loan is a short term loan that is due on the very next pay day. This is by far the simplest definition of a payday loan. However, for easier and a comprehensive understanding we shall break the definition into bits in order to understand the ingredients of a payday loan.
The loan is for a very small amount:
The loan amount is pegged at between 150 pounds up to a maximum of 1000 pounds. A first time applicant is entitled to only 650 pounds maximum and if the borrower comes around the second time, then he is entitled to amount higher than 650 but of course with a cap of 1000 pounds.The loan is due on the next pay day. If there have been unexpected or serious expenses which you just could not avoid, then payday loans are just right for you. The borrowed sum is due only on the next pay day and the amount can be totally foreclosed as soon as the salary of the person is credited in the bank or it could be payable in equal monthly installments for up to three consecutive months.
The loan is for a short term only: the payday loan is for a short term of three months only. The amount borrowed is however due on the first payday that falls subsequent to the borrowing. However, borrower may choose to foreclose the entire loan amount at ton e go or break it into three bits to be paid across the time frame. The borrower also has the absolute freedom to foreclose the entire loan amount before the designated due date which is the first payday.Payday loans are unsecured loans. But the lender has to be given post dated payable checks as assurance of the repayment of the loans:Sometimes, the verification procedure like employment and age limit check are relaxed but the lender must be given post dated checks from the account of the borrower as an assurance for the repayment of the loan. The thing to be appreciated here is there is no kind of mortgage or hypothecation that is expected by the lender Payday loans online .
Are you serious, can I get loans for such small amount?
Can this be really true? Can an amount as low as 500 pounds be borrowed in case of need? It sounds like such a beautiful concept.Yes, indeed it is! It may be easier to secure bigger loans and then sit through the mundane and Herculean procedures and verification, but getting smaller loans for everyday expenses cannot be simplified further than this. And no questions as to the purpose of the loan asked, how more wonderful can it get?!
What is the verification and documentation required for obtaining a payday loan?
While the enquiry for the payday loan may vary from lender to lender, the following upfront verification is needed for a payday loan to be sanctioned:
The borrower must be a citizen of UK;
He must be of 18 years of age and above;
He must have a job and proof of a steady income
He must have a verifiable and operational bank account in the UK.
Are there any hidden costs?
There are no hidden costs in the acquisition of a payday loan. Remember, the entire payday loan that is sanctioned online is an unsecured loan and the borrower is in a much better position than the lender here. The interest is slightly high but there are no hidden fees or processing charges whatsoever.
Look, I have an emergency. In how much time can I acquire the loan?
Your loan can be sanctioned in a matter of fifteen minutes alone. The payment will be done directly into your bank account and mostly credited on the very same day as requested. Even if it is a bank holiday, the application for the loan is processed immediately, but the cash in the account is transferred on the next working day only. The payday loan is a 24/7 option and a loan can be sanctioned even in the middle of the night. This is virtue of the fact that the entire procedure is done online.