In our term” payday loan is defined as the provision of small amount of cash loans marketed for a very short term basis, not deeply secured against collateral, includes loans repayable on the customer next payday or last of the month, and very specific not including home loan, credit cards & overdraft”.
In brief, Payday loans ,is a Excellent financing option in India now a days to meet short-term requirements of the cash flow, Such kinds of loans can be easily availed from a financers or lending websites. It is generally taken for 12 months or less, and the amount borrowed is usually $1000 or less.
Single repayment loans are usually linked to the individual payday, a loan will be covered in the period up to the day, on which a individual is next paid.
The borrower can take a privilege to pay the loan in a number of installments or as per his need, but the time frame should not exceed 11 months of time.
All over the world, people are using various tools of lending and borrowings to catch up with their financial needs, as one of the best source of funds id Pay day loans. As several trusted lenders have merged to be a helping hands for borrowers in India.
As we know there is a Pros and cons of every aspect, so let’s have a look at Pay day loans in India advantages and disadvantages-
Pay Day Loans are quick to apply, receive and pay. Most probably we get the money within few minutes, if we need money for any work or emergency, this is a most popular and also gaining its share in India.
Pay Day Loans absolutely saves you from Bank overdrafts, credit card usage, Bounced checks that results in very high charges and fees.
credit report is not been required in Pay day Loans, if your report is negative then also this loan is available for you, only we have to come up with a valid id proof and few post dated cheques as been required.
while choosing the lender it must be look up into the agreement as the interest rate can be as high as 35% depends on the lender, so if due to some reason we are not able to pay that will result in paying the Principal amount twice or thrice, what the case should be
As the repayment days is very less as the loan is not offered for a longer period, so it have to be planned regarding the pay back to save you from much potential trouble..
The working of payday space is much increased in the capital of India i.e. in New Delhi as here are many young and dynamic corporate working and some or the another they are in need of the amount at some moment.
If we see the figures of startup 84 startups are been here who offered payday loans and 30 of them were started only in the year 2016.
They are using very Lucrative methods to lower the cost to attract more customers.
As Demonetization has given a further boost to Pay day loans, that forced to knock on the doors of the Lender to tide up with the personal emergencies.