We come across many types of loans like personal loans, education loans, and housing loans. However, the short-term loan is new in the market and is quite in demand. This loan is also known as cash advance, Pay check loan, Check loans, and Payday loans. Let us understand a few things about this short-term loan.
Most short-term loans are available online so that you receive it instantly. There is no hassle of faxing documents or waiting in a queue like in the bank. The loan providers decide whether to lend you money or not, based on certain criteria that we will discuss below.
Loan Pig is a renowned UK payday loans online service. They provide short term online loans in a fast, easy, and simpler way. In case, your documents don’t match with their criteria, they’ll still look for a lender for you that matches your detailed application. Your information is safe with them. All their information on their online site is authentic along with their terms and conditions as well as an interest rate.
Process of Getting Short Term Loan
- Once you have found out the best loan creditor with an appropriate interest rate, then apply online with them.
- After receiving your application, the company will email the application form and ask for certain documents like driver’s license, bank statement to know your financial status, your employer and payday, etc. (every loan creditor has different requirements.)
- Once all documents are submitted, they review it and reply within few days. Trust me it doesn’t take much time like the bank’s procedure. (The early you submit those documents online, the early is the process.)
- Once your form is approved, they will send an approval email and within a few days the funds are transferred in your bank account. You will be given a due date when you can pay off your debt.
Drawbacks of Pay Day Loan
If a payday loan is beneficial in urgencies, then it also has certain drawbacks –
- When you’re unable to pay an instalment, the lender can offer rollover or further loans. This may sound beneficial at that time, but it only incurs more interest rate and other charges.
- Some lenders also suggest auto payment or recurring payment in which the money will be directly taken out from your bank account on the repayment date. This may sound easy, but you should have enough funds and also think about the other bill payments like electricity and water.
- You can think of rollover payment or extensions, but that will increase your interest rate and there isn’t any guarantee if you can pay those extra fees next month. Avoid extensions and try adjusting and cutting down expenses from the beginning.
- Payday loan is for small financial difficulties, but avoid them if –
- You have other loans to take care of.
- If you’re not sure that you can pay them next month.
- Don’t take payday loans for petty things like night outs, new clothes, jewellery shopping, etc.
When you take payday loan from a lender, always ensure that they’re regulated with the Financial Conduct Authority. Many people don’t have savings or credit cards due to bad credit score. Hence, a regulated payday loan provides them a piece of mind on occasions when they need some money quickly.