Representative APR 1272% (Variable)
Representative Example: Borrow £250 for 90 days. Total amount repayable is £411.63. Fixed interest rate of 292% per year.
Short term loans are very popular in UK because of their flexible repaying term. Traditional payday loans are meant for time frame till next payday and to be repaid in one go. In short term loan term is variable from few days to 12 months and repayment options are in monthly installments. Of course the duration of loan period will put extra burden of interest on borrower.
We can differentiate of short term and long term loan is according to loan repayment period. Generally loan period more than one year are called as long term loan for example home loans and consumer loans. If loan period is less than 12 months then it is considered as short term loan, example like personal loans. Payday loans are also one variant of short term loan where loan term is limited till next payday of the borrower.
Sometimes payday loans are not able to cater the need of the borrower. For example if you wanted loan amount higher than your monthly savings then its repayment will not be possible in next payday. To solve this type of problems, the concept of multi-month loan or installment loan came in the loan market.
The advantage of these short terms multiple installments loan is higher sum of loan. Now the borrower can use many monthly savings to repay loan in regular installments.
As we know the interest rate of short term loans is high so this burden increases with loan term, this is the negative aspect of these loans.
When anybody is in urgent financial need then he tries for fastest possible cash solution to come out from this situation. The online mode of funding made easy to solve financial crises in quick span of time. Search of short term loans with websites like PayDayLoanSite is very fast and simple. Just fill the required details and submit the form we will share these details with our associated lenders, they will underwrite the application with automated algorithms and perform credit checks and let you know the decision very promptly. As loan disbursement procedure is also automated and fund is directly wired to bank account so you may get cash even on the someday of the application.
Lenders instant decision of loan approval or rejection is now possible due to optimum use of technology. In past risk assessment on loan was done manually and also many papers and fax messages are called for loan processing. Now lenders have developed software based loan approval process, so time of decision is reduced dramatically. Now getting short term loan is a matter of few hours in any working day or maximum next day of application.
In UK financial market short term loans are called with different name as per borrowers requirements, followings are few taken from search results. Payday loans, Fast Cash, Cash Advance, Cash Loans, Bad Credit Loan, No Credit Check Loans etc. Basically all these loans are short term loans only. Their application, processing and loan approval is similar. To attract different segments of borrowers these names are floated as a marketing strategy. The main eligibility of short term loan is person's regular employment and monthly savings. So that he can pass the affordability check put by every lender which is a part of responsible lending policy.
As per principle short term loan application is not restricted to any credit rating borrower, so bad credit person who satisfy basic loan eligibility conditions like regular employment, above 21 years, UK citizen with proper bank account; can apply. But at the time of loan underwriting, if he fails in affordability and suitability check, then his application may be rejected or it may be considered at higher interest rate, to compensate lenders additional risk involved due to poor credit.
short term loans and payday loans are unsecured loans, so before loan acceptance lender wanted to assure that this money with interest come back to him again in due course of time. This is the reason each and every lender perform credit check of loan seekers. If borrowers poor credit rating is due to past loan defaults then possibility of loan denial is high, otherwise he may consider for funding with modified loan terms and conditions
Ultimately loan disbursement is done by lenders only. In case of direct lender's payday loan funding the borrower have to approach lender directly via personal visit to his office or through online. The other way of payday borrowing is via broker. Many applicant think that if they apply through broker they have to pay brokers fee. But this is not true in all cases, as brokers are generally paid by lender only. If brokers prospective loan lead is converted in to complete borrowing they get commission from lender. The advantage with direct lender loan is that borrower can negotiate on interest rates and lender may share the brokers commission with the borrower.
Representative Example: Borrow £250 for 90 days. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Fixed interest rate of 292% per year. 1272% APR Representative.