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Why One May Need a Small Payday Loan ?

During these tough economic times, people often find themselves in financial crisis that can be solved by a small payday loan. This happens mostly when there is an emergency, and money is needed. Getting cash between paydays is very difficult and can be frustrating. Borrowing money from relatives and friends is not an option anymore, because most of them might be broke.

To help you get through your financial problems, you can apply for a small payday loan. Quick Payday loans have enabled people get enough money to sustain them for a few days till they get their salary. Instant Payday loans are available from most financial institutions.

Companies and banks collaborate to come up with small payday loan plans. With this plan, lenders can lend money to an employee of a certified company. Moreover, the financial institutions have confidence when advancing such loans because they don’t fear losing their money. With such an arrangement, the process is simple and convenient to both parties.

Handling a Small Payday Loan

Just like any other loans, payday loans have interest charges. The charges are different depending on the lender rates. Examples of payday lenders include your bank, or other financial institutions. To get the best interest rate, it is good that one does some comparison of rates offered by different banks and companies. Fortunately, the requirements needed are not hard to meet. The borrower should be at least 18 years with a monthly income and a checking account.

Most people have questions about small payday loans.  Some of these questions are: Where does one apply for the loan? How long does takes to process a payday loan? How much interest us charged?  Will a bad credit rating affect ones application? It is fundamental to visit your preferred creditor because answers to these questions vary from one creditor to another

Types of Payday Loans

There are different types of payday loans. Some of the most common include online payday loans and retail banking lending. Payday loans online are not all that similar to conventional loans. Conventional loans are paid off after several months or years, but not with quick payday loans. Payment of the small payday loan is expected on your subsequent payday or the one after. The payment is set to be quick in order to minimize the amount of interest charged. The principal amount borrowed and the duration of time are some of the factors that determine the interest charged on payday loans. However, it is fundamental to note that the borrower will pay additional costs e.g. bank transfer fees.

It is normal for a lender to check your credit rating. Loan applications are mostly declined when your credit rating is poor. For small payday loans, this is not usually the case because they are meant to help you financially for a short time with the repayment date being the subsequent payday. This means that the person taking a loan can pay it immediately and does not have to be in debt. By paying your payday loan in time, you gain the trust of the payday lender. This will also be marked in the credit file of your small payday loan.

Representative example on a loan of £200 repaid after 30 days:

  • Total charge for credit: £248
  • Payable in one payment of: £248
  • Interest: £48
  • Interest rate: 292% p.a.
  • Representative 1223.6% APR (variable)

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Marc Obadia T/a - Payday Lenders Direct Registered Office : 8 Parson Street, London NW4 1QB
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