Thursday, July 12, 2012 11:47:55 AM
Payday loans no faxing are a fast growing industry in the United Kingdom. In 2009 there was a four fold increase when compared to the period 2006. The average amount of a loan is GBP 300 and is applied for by those whose incomes are less than GBP 25000 per year. To be a lender, as per the Consumer Credit act 1974, they should obtain a license from the Office of Fair Trading (OFT). This is to ensure that the lender acts with responsibility and has to operate under set guidelines. However there is no restriction on the amount that could be charged as interest. That element is left to the discretion of the lender. Advertising too is regulated by the Advertising Standard Authority. All advertisements of payday loans should meet with certain criteria and should carry information that these loans are available to those who do not otherwise have access to credit. The rate of interest too should be stipulated.
The requirements necessary to avail one's self of these loans is very simple. All that is needed is that the applicant should be a British citizen, be over 18 years of age, possess a permanent job and have an active bank account.
These online same day cash loans
can be applied from the comfort and privacy of your own home. The only necessity is a computer with access to the internet. Time and energy is not wasted travelling to and from banks and waiting in queues. Applying online also means that the application could be made at any time of the day without the need to depend on the operating hours of the bank.
Unlike the forms that have to be filled to obtain a regular loan and the time involved in obtaining approval, applying online does away with paperwork completely and the loan is granted within the hour.Bad credit
lines or if all manner of obtaining loans are exhausted will not pose a problem because no credit checks are made. Based on the information provided in the application, data bases will be checked and if everything is in order the loan would be approved with no questions being asked. The absence of collateral will not be a drawback either. What is required is that the loan has a reasonable chance of being paid back from the paycheque.
For those who are posted to, or live in far out places and getting to a bank can be a bit of a hassle, the payday loans scheme are ideal. These loans are also a boon to the young who do not have credit rating and need some cash in a flash.
There are times when cash is wanted immediately to meet the pressing need of the moment. At the specified time it maybe a small crisis but if there is the inability to obtain funds within a quick period of time, the small crisis could snowball into a bigger calamity.Payday loans
are a good source of emergency financing and they are meant only to tide over an emergency financial need and should not be abused in obtaining loans repeatedly. With proper financial control, the payday loan is a good way to tide over temporary financial drawbacks. Those who have poor financial control should avoid taking out loans since they will be caught in a vicious trap should they be unable to pay back.
Thursday, July 12, 2012 11:40:18 AM
The advent of the credit crunch has left many feeling the pinch, payday loans are now being turned to by increasing amounts of borrowers.
When we think of borrowing, the amounts that come to mind run into over four figures and sometimes five. This type of borrowing is a process and with background checks being done, there will be a time lag between submitting the loan and receiving it after approval. While all this is being done, the daily cash flow seems to be in order and there is no longer the hurry to obtain the loan.
Yet, there are those for who even a two figure amount can be a big amount, let alone a four or five figure one. It is for this section of the population, when a financial upheaval takes place, obtaining a quick loan can become a nightmare. To these people an unplanned expenditure of 10 pounds is a gigantic amount. So, where can these people go to obtain a fast loan, which do not even have the collateral or the time to wait for the passage of t
he loan to go through?
Fortunately there is a type of lender in the fiscal market who offers assistance for these types of loans. Small loans ranging from GBP 100 to GBP 1500 are available to those who face a monetary crunch with the minimum of fuss. The online lender of whom there are many, step into the breach of offering small loans without the need for paperwork. These loans are known as payday loans.
Just as the name suggests payday loans
are just that. It is a loan from payday to payday and caters to small amounts. The cost of capital would be approximately GBP 25 per GBP 100 for a period of one month. Thus if a loan for GBP is taken at the end of the month the payback amount would be GBP 125. If for some reason there is a delay for three months then the pay back amount would be GBP 100 + GBP 25 x 3 which equals GBP 175. The rate would seem rather high but the lender takes into account bad debts, delayed payments or dishonoured cheques.