What is a Payday Loan?
You may wonder what a Payday Loan is, whether you need one, and if so, how you go about receiving it.
Definition of a Payday Loan?
A Payday Loan is a small, short-term loan that is due to be repaid upon receipt of a salary. This type of loans were created to help individuals cover emergency expenses that arise between payment of salaries and when there was no money left from receipt of the previous receipt of salaried monies. Typically:
- The amount borrowed is relatively small, typically under £1000.
- The loan is paid back when you receive your next salary or another agreed-upon date, often within a one-three-month period.
- You authorise payment by debit card, so the lender can process payment for the balance plus fees and interest on the agreed-upon date.
How does this type of loans work?
Instant Payday Loans is a broker of short-term loans. We understand that individuals might seek our broker services for various reasons and circumstances. While we are happy to provide qualified clients with options of payday/short-term loans they need to make it through the next few weeks, we also want to see our clients succeed financially long-term. For this reason, we encourage all our customers to take advantage of any available free advice and to understand the particulars of any financial agreement they consider.
Applying for a Payday Loan
The process for applying for payday loans or short-term loans depends on the lender in question. Most require some basic information, and some check your credit and base a lending decision in part or entirely on your score. Instant Payday Loans require potential borrowers of loans to complete a very simple and fast online application. You just need to be 18 years old or older, have valid contact information and have a UK bank account and valid debit card.
Our carefully selected panel of lenders provide funds to approved applicants introduced via Instant Payday Loans with a transfer to a UK bank account, usually by the next business day. For more information please see our FAQs here.
Repayment of Payday Loans
The terms of and way a payday or short-term loan is repaid is dependent upon your lender. You’ll be required to sign an agreement authorising the payment to be debited directly from your bank account on an agreed date.
Why might you use a payday or other short-term loan?
There are many reasons an individual seeks a payday or short-term loan. Many things can happen between paydays and receipt of salaries, especially if you are paid weekly, fortnightly or monthly. A short-term loan can be a way to cover emergency household or motor vehicle repairs, medical emergency costs, unexpected travel expenses without incurring overdraft or late fees at your bank.