A payday loan, widely known as cash advances are small, short-term unsecured loans. Payday loans are different from other financing options such as personal loans, mortgages, or credit cards. The borrowers are expected to repay payday loans all at once. Though payday loans can be availed instantly and have easy eligibility criteria, they lack in affordability.
Payday loans with no credit check
While availing a payday loan, your loan amount is decided by the lender on the basis of your income. The lenders may issue you a cheque or make an electronic deposit into your bank account. You are required to pay a fee for the loan based on the amount you are borrowing. Since the lender approves the payday loan without any credit check, the interest rate is typically higher in most cases.
You would be required to repay the loan on your next payday. However, you can also opt to “roll over” your payday loan. When you roll over your payday loan, you essentially start a new loan. In order to get this extension, you will have to pay the loan fee again.
Payday loans with no credit check are a good solution if you wish to avail a small amount of money. It is equally important to ensure that you repay the payday loans on time. Failing to which, the fees can add up quickly and you might eventually end up repaying a lot more than you borrowed in the first place. While availing a payday loan, it is also very essential that you read the terms and conditions mentioned in the agreement carefully. Ensure that you have a clear understanding of the fees. Most lenders decide their fees depending upon the borrowed loan amount. Also, you should make a note of the repayment date. Some lenders will automatically roll over your loan unless you tell them you are planning to make a payment.
The laws regarding payday loans are different in different countries. Some jurisdictions limit the annual percentage rate (APR) that any payday lenders can charge. This ensures that the borrowers do not have to bear unreasonable and excessive rates of interest. Some jurisdictions outlaw payday lending, whereas some have very few restrictions on payday lenders.
In India, it is possible to avail payday loans with the help of some leading Non-Banking Financial Companies. While applying for a payday loan in India, the applicant has to provide the following details:
- Age Proof
- Proof of active bank account
- Proof of income
- A valid phone number
- Pan card number
Payday loans can be availed easily through a hassle-free online application process. Once the application is approved, the loan amount is disbursed within minutes. However, it is recommended that you check your repayment capacity before availing a payday loan.
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