Loan till Payday - A Necessary Evil

A Loan till payday or a payday loan is a life saver for those, who are in urgent need of cash and have no sources of getting it. They are short-term unsecured loans that are issued against the assurance of the next pay cheque. These loans generally charge a high rate of interest compared to other loans. However, there are many advantages of loans till payday that these loans have become a necessary evil today.

Benefits of Availing Payday Loans

Easily Available Loan: payday loans are easily available. The criteria for qualifying for the loan are simple. Any US citizen who is 18 years of age, earning a regular income, and has an active bank account qualifies for applying for a loan till payday.
No Hassles of Credit Check: Credit worthiness of the borrower is not checked before disbursing the loan till payday. Therefore, people with poor or adverse credit history can also apply for the loan. Such a facility might help them in improving their credit worthiness also.
Trouble-free Application and Repayment: Applying for loans till payday can be done online. The verification is also immediate and the money is directly credited into the borrowers account. Repayment is also simple. There are two modes of repayment. The borrower either can issue a post-dated cheque or can arrange to have the principal and interest directly debited from his account. He can choose whichever mode is convenient for him.
Dependable Source of Instant Cash: if the borrower satisfies the minimum criteria for obtaining the loan till payday, then he will have access to quick cash whenever he needs it. It is his own money, which he is getting in advance for a small price.
Abundant Choice: The loan market is replete with companies offering loans till payday. The borrower can do a thorough market research before he goes in for the loan. Since the payday loans are short-term unsecured cash loans, interest on them are generally high. But different companies charge different interest rates. Many companies offer low cost payday loans, so as to make their loans more attractive. With careful survey, the borrower will be able to select a payday loan that is available at the least cost to him. This will reduce his liability.
Non-Repayment of the Loan on Due Date. If the borrower is unable to repay the payday loan on the next payday there are options of rolling over the loan for another period. This will give him some more time to pay off the loan. He can also convert the loan into a long-term loan. Long term payday loans are basically short-term payday loans converted into long-term loans against some security.