27 11 / 2013
Short term lenders:
To help the people of low income group at the time of need and if any problem or emergency occurs in the life of salaried class, lenders are present in the market. They provide short term loans to the people who need money. Even the direct lenders for payday loans are also available in the market.
A payday loan is a type of short term borrowing where an individual borrow a small amount of money but the interest rates for these payday loans are comparatively higher than the normal rates of interest. These loans are for the people of low income group because they save less or they may have shortage of money in an emergency.
Difficulty in payback the loan:
Some direct short term lenders for payday loans provide the loans for only 30 days but some lending companies may provide for months for example for 3 months, 4 months, and so on because to pay back the amount for 30 day loan becomes difficult for the borrower and then end up rolling the loan over into the following month having only paid the interest. Next month they roll over again and so on. So to minimize the difficulty of the borrower to pay back the amount, some companies spread the repayments over 3, 6 or 9 months.
Credibility check for loans:
Direct lenders for payday loans check the credibility of the person before giving loan whether he is able to pay back the amount with interest rate or not. Some companies do not provide the loans to the persons who have worse credibility but some companies provide quick loans no credit check facility to the people.
Facility of quick loans:
According to quick loans no credit check facility, lenders give the loans to the people without checking the credibility. As the procedure for checking the credibility may be lengthy. So they offer a quick loan facility to them as the borrower may need money for emergency use. Lenders always try to facilitate its clients whenever possible.