Personal payday loan provides financial assistance to an individual when his bank balance and savings are inadequate to meet the immediate expenses. They are basically a product of short term unsecured market fund.
Personal payday loans are designed in such a manner so that it can give financial support to an individual. And they get mature till his next payday. Generally, the term of payday loans varies from 15 days to 20 days but sometimes the lender can extend the term to the subsequent payday at the request of the borrower.
As said personal payday loan is the product of unsecured market fund, so there is no need to keep any collateral with the lender. Usually, the people not willing to place collateral or who are not in position to place collateral gets attracted towards personal payday loan.
Besides collateral, there are certain other factors which make an individual eligible for personal payday loan. They are:
Running bank account
Post dated cheques
In Personal payday loans the lender doesn’t ask for collateral but in return of taking such high risk they charge high rate of interest. This is the also reason that why personal payday loans are known as expensive. As personal payday loan is expensive mode to satisfy financial needs so, it is suggested that it should be availed when the need is urgent.
Here, urgent implies that when there is no other option of finance is left.
Before availing personal payday loan the person must keep his eye open and consider all the clauses and terms of the loan deal. The person should ask the lender for loan quotes which will enable him to compare various offers of personal payday loan deals. Ensure that the loan deal doesn’t carry hidden cost because it increases the cost of the loan. The person should always try to avail the loan deal with low annual percentage rate which ease the repayments of loan.
Last but not least, take into account whether its repayments suits your pocket or not. Then only go for personal payday loan.
Personal payday loans are available to any person that is whether with good credit score or bad credit score. But, it is also sure that the person with good credit score will definitely be offered with competitive rate of interest as compared to the person with poor credit score.
Just to wrap up, personal payday loans are the source of fund in emergency need of finance when savings and bank account of person doesn’t support him.