About Pay Day Loans

Introduction

Pay day loans are unsecured loans issued to individuals by financial institutions and the money is repaid on your next pay day. Pay day loans are issued in smaller denominations to help individuals with fast money to pay for their day to day expenses, out of budget expenses as well as to pay long outstanding debts. They have a life span of less than a month, thus the principal amount plus interest charges has to be paid on your next pay day.

History

Pay day loans are provided by banks and other financial institutions to help individuals with instant cash to pay for personal expenses. This product has been introduced by banks as a solution to personal financial needs of individuals. Pay day loans attract a relatively high interest rate because they are unsecured, thus the risk of default is very high.

Features

It is important to note that anyone who is working is eligible to apply for a pay day loan. The money that will be advanced by the bank will depend on your salary, your monthly expenses such as rent and transport as well as what you can afford to pay your next pay day.

Pay day loan requirements are your personal details which are your full name, identity number, contact telephone number and residential address. This personal information should be supported by your identify document or passport and proof of address that you will be required to fax or deliver to the bank. The bank also requires your employment details such as name of your employer, contact details, physical address and salary. Other information required includes your pay day, credit history, your banking details as well as your payslip. It is important to note that, the financial house will verify your credit history with the credit bureau on your behalf.

Pay day loans are regarded as instant loan the application and authorization process takes less than 24 hours. This means that as soon as the bank receives your information and the required documents, the money will be transferred in your bank account within 24 hours. They are easy to secure because the application process can be done by completing a simple personal loan application form that are found on the website of any lending institution. Alternatively, the application process can be done via the telephone.

It is important to deal with a reputable bank or financial institution in order to avoid fraudulent activities or any misleading terms and conditions. In this regard you need to do a simple home work of choosing the best financial house to deal with before applying for the loan.

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