The definition of a payday:
A short term loan that is lent to a borrower who has a steady income flow and the loan itself will be due on the subsequent payday from the date of the borrowing of the loan. The payday loan is an unsecured loan meaning that there is no physical security or collateral that is kept against the cash borrowed by the person.
No hypothecation of goods is possible:
This also means that in case the borrower defaults the payment of the loan on the due date, the lender will have no remedy of hypothecation of goods because there is absolutely no security that the borrower furnishes or the lender requires in order lending to him the payday loan.
Proof of employment is a pre requisite:
The lender will however need to know that the borrower is an employee and that he has a steady stream of income. The proof of income along with certain basic details like the borrower’s bank account details etc are taken down before the loan is swiftly sanctioned to the seeker.
No credit report sifting:
Payday loans can be applied even online and through phone and there have been cases where the cash loan is credited into the borrower’s account in a matter of fifteen minutes. That is an amazing feat considering the conventional loans that can take weeks and sometimes month in order to apply and then to get them sanctioned.
The loan is for small amounts only:
The main purpose of the payday loan is to tide over the difficulties of the remaining days of the months until the next payday comes. Hence also the name! It happens a lot of times with most of us that our paycheck is swell and our bank account is almost self sufficient for the first two weeks and then your account starts drying up and by the end of the third week, you are thinking loudly to yourself expressing doubt whether it is even possible to scrape through the last week of the month. This is when the payday loan will come handyOr consider another example. Everything is going on well and you have planned your monthly finances exceedingly well. You have even been couponing and patted yourself on the back for saving closure to a hundred dollars in the last three and a half weeks. And then suddenly!
Suddenly your car breaks down or your roof needs repair. Obviously, pressing emergencies such as these cannot wit even a couple of days assuming that your paycheck is due anytime soon.
What do you do?
Pick up the phone and speak to a payday loan lender who will be more than ready to give you hard cash for your immediate use. The due date shall be on your payday which is close by. So, on the payday, when your salary account is credited with your pay, the first liability to be cleared automatically from the bank itself will be your payday loan. This is a great system that is in place because once your loan liability is electronically and automatically cleared you now know that the money in your account is all yours and you can budget as you like it!
Different names for the payday loan:
In different countries and even in different parts of the country, a payday loan may be referred to by different names. So, a payday advance, a salary loan, a payroll loan or even cash advance all mean one and the same and have the same implications as the payday loan.
A payday loan is convenience personified:
Since the credit score is never ever considered, there is no fee for applying the loan, no charges or costs whatsoever, nor is there long drawn cumbersome and sometimes anachronistic procedure to be followed in order to procure the payday loan. All this and much more make it the best thing to happen to employees.
The payday loan can also be applied through the phone:
If you have a smart phone with internet connection on it, you are already equipped to procure the payday loan from your phone itself. There is no need for you to even move an inch from the place that you are sitting. It is truly amazing what technology has brought to passé. The world is a lot more convenient place to live thanks to the internet and to the payday loan!