Payday loans making the loan availability nightmare a myth

At the verge of global credit crunch, unsecured loans have become a nightmare. They have not only become the rare breed now, but also available to the perfect credit borrowers at an exorbitant rate of interest. Keeping this developments at forefront, the short term loan industry has grown significantly in the United Kingdom. With so many barely making ends meet, unforeseen circumstances such as a car repair or medical bill can be financially debilitating and frustrating too. Short term loans are designed top address these unforeseen money scenarios when there are no alternatives available.

Payday loans available in the UK loan market are the short term loans for those times when cash is needed fast. These loans will lend you money for a period of two to four weeks. You need to repay the loan amount with interest and fees on the arrival of your next payday cheque. They are also referred to as cash advance loans, payday advance loans instant cash loans etc.

All payday loans come with a high interest rate due to their unsecured nature. The lender will typically charge between 15 and 30 pounds for each 100 pounds that you borrow. This amount will vary depending on your lender, your own qualifications, and the amount of money you are borrowing to meet your needs. Payday loans can give an amount you anywhere from 100 up to 1000 pounds. Again, the actual amount will be determined by the lender and your own repayment qualifications. Very few payday loan companies can offer loans of 1200 pounds or more. You can apply for these loans in person, over the phone, or online. The lender will require you to fill out an obligation free loan application which will ask for only basic information such as name, address, place of employment, and income.

Most of the lenders will not need a credit check for loan approval. After you submit your loan application, you will generally get a decision on the same day. Assuming you are approved, the funds is deposited into your bank account in one day or less. The lender will than automatically deduct the full loan amount plus the mutually agreed fees from your bank account on the date in which it is due.

The entire payday loans processing is very quick. Most lenders will complete the application process and deposit the loaned amount directly into your bank account within a time period of less than 24 hours. In some cases, cash advance payday loans may be given to you as fast as one hour from when you apply. Different lenders have their own qualifications for payday loans, but the usual qualifications necessary in order to be eligible are more or less the same. They are:

• You need to be a legal citizen of the United Kingdom


• You need to be minimum 18 years of age or older


• You need to be employed with a monthly income of over 1000 pounds for last six months

You need to have a valid checking account where the money will be deposited


If you are unable to pay back the payday loans on the due date, you can extend the due date out. Remember that that you will have to pay an extra fee for the loan extension.

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