How to Get Best Payday Loans in London
Payday loans have been one of the most used, sometimes the only source of finance for many people in the UK. And admittedly, the cities in UK are not cheap to live in, especially in London. The city calls for a stable income to survive there, so when financial troubles strike, finances can often be stretched to their limits. An emergency situation, a major repair in your car or your house, or any other urgent bills can set you back a lot of pounds on your wallet and thus call for a need of credit source.
Payday loans in London have been extremely popular among the employed people there for many years now. Everybody knows the risk of humongous interest rates that comes with these loans, but their convenience is what makes these loans very popular indeed. So if you are looking to get payday loans in London, then you should know all the features of this credit source along with the risk factors that come with it.
Single instalment payday loans are given out for a short period of time, for up to 40 days. Thus, they fall into the class of short term loans and hence carry high rate of interest up to 0.8% per day on each 100 pounds that you borrow. These loans are to be repaid back on your next payday, when your payday arrives.
What are the interest rates?
The interest rates for payday loans in London may vary with different lenders, but thankfully, there is a cap on how much interest lenders can charge. A maximum interest rate of 0.8% per day is applied, so 80p per day is added for every 100 pounds borrowed by you.
What is the amount that can be borrowed?
Payday lenders offer payday loans generally for £1000 or less. If you are a new customer, the maximum amount that you might be applicable for may be around £300 to £750. However, that depends on the lender. Moreover, some lenders do give out payday loans of amounts up to £1500 to their repeat or loyal customers who have a good relationship with the lender.
When is the amount to be repaid?
As the name itself suggests, the original payday loans are to be paid back on your coming payday. If you have borrowed in the first week of the month, then you will need to pay it back three or four weeks later on your next payday. But if you have borrowed the loan within a week before the arrival of your payday, then the repayment is often due on the next payday, though different lenders have different provisions for the same. In more recent years, payday loans can be borrowed over several months to enable lower repayments, however in these cases the total cost of the loan will normally be higher.
How to apply for the best payday loans in London?
Applying for payday loans is a very simple and a hassle-free process, one of the major reasons for its popularity. You just need to go to the lender’s branch and fill out an application form with all the personal, financial, and required loan details. Once your application is checked, verified, and accepted by the lender, you are given a few loan packages to choose from and then you choose one and sign the agreement. Then the loan is processed into your account.
Can I apply online?
Most of the payday lenders nowadays have their own websites where users can apply for a payday loan discretely in the comfort of their own home. The procedure is the same as going to the branch and within a few clicks, your application is sent to the lender. They then assess the application and call you back with the details of the loan. Please don't let this more relaxed method of applying make the loan any less serious. It is still an important credit commitment.
How much time does it take to get the loan money?
A major reason for the success of payday loans, in London or anywhere, is that they get processed relatively quickly compared to other sources of credit. The loan application can in some cases get approved within an hour and you get the loan amount in your bank account shortly after that. The process is often done much quicker if you are a repeat customer.
How do I pay back?
Normally your debit card details will be collected at the time of application, and the loan amount with interest and applicable charges will be deducted from your account on the repayment date.
What if I default on the payment?
You can rollover the loan A limited number of time if the lender assesses this to be affordable and in your best interest. This will of course cost you more. If you are having troubles repaying the loan, you can tell it to the lender, who will work out a customized repayment plan for you for easy repayment in instalments.
Warning: Late repayment can cause you serious money problems
For help, go to moneyadviceservice.org.uk
Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
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