Payday Loan in the UK - Solution to Prevent Bounced Cheques

By: Apurva Shree

Payday loan in the UK provides you access to money at a time when you require it the most. There are many companies which offer a one time payday loan application process and with it you can request a loan multiple times. These are short term loans taken for small needs which are repaid with a pre-approved electronic withdrawal of money from your bank account on your next payday. The process is very fast and reliable.

Information About Payday Loans

The application for a payday loan in the UK available on the lender's websites can be submitted online or can be downloaded. You can fill in the application at your own convenience. In the application, you are required to give your personal as well as financial details. Once those details are found to be genuine, your loan is approved and the money is wired to your checking account the next working day. Usually, for approving an application they do not take more than 3-4 hours.

The eligibility criteria for the payday loan in the UK are also very simple. You should be at least 18 years of age and a UK citizen at the time of applying for the loan. Also, you must be employed, drawing not less than ?1000 and must have a valid checking account. Chances of rejection of your application are reduced if you fulfil all the above requirements.

Getting loan from a payday loan store in the UK has never been so easy. Visit a near by store and take a cash loan for the amount you need. The loan usually ranges between ?80 and ?1000 and is expected to be repaid within 2-4 weeks. Along with the loan amount, the borrower has to pay the finance charge typically around ?10 to ?15 that translates the rate to 390% to 700% when expressed as an APR.

For the repayment of the amount the borrower gives the lender a post dated cheque which includes the amount of loan plus the interest and the fees. On the due date, the lender of payday loan UK electronic withdraws the money from the borrower's account. In case the account of borrower does not have enough funds at the time of payment then he has to pay the bounced cheque fee also. Many borrowers fail to pay the complete loan on receiving their first pay cheque and renew the loan. The loan can be renewed at a limit of maximum 6 months.

To conclude, a payday loan in the UK facilitates you with money to overcome your financial urgent needs. It is the most convenient method of securing money in a secured manner. However, until and unless there is an urgent need, you should not go for a loan.

Payday Loans
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