Things you need to know about payday loans in India.
by credit bazzar Instant payday loan in as short as 15 minutesPayday
loan is gaining importance in India day by day. As we all know, it refers to
borrowing money which is to be paid back on the next salary day. It normally
comes with high interest rates and is given on the basis of your income for the
short duration of time. In last couple of years, there is significant increase
in people using this option to fulfill their urgent money needs. These loans
are mainly provided by private financiers that can also be called as
non-banking finance institutes. These companies perform the functions which a
bank does, but do not fit in the definition of bank.
Factors
involved in growth of payday loan sector-
- The factor which is responsible for significant
growth in this sector is the change in borrowing habit of the working
people in India. People run out of the money at the end of the month. The
main reason behind this is several expenses in store even before the
salary is credited in the accounts. This serves as an opportunity for the
financial institutions that provide loans for short period of time which
is to be repaid on next salary day. Most of the people have started using
this option as the reliable source for solving their money problem at
month end. Demonetization has also played a key role in growth of this
sector.
- Another reason for the popularity if payday loan
in India is the people’s desire to get instant money for fulfilling their
requirements in this fast and challenging life. Traditional financiers
like banks have long approval process and hence they are not useful in the
emergency situations. The amount taken as the payday is very less which a
bank does not provide as loan but a private financier does.
- The loan approval process is very quick and
simple. Additionally, there is no credit check. You just need to submit a
copy of pays lip and recent bank account statements. So, this type of loan
is suitable for those having bad credit history.
Process
of applying payday loan in India
In
order to apply payday loan in India, you need to furnish certain
documents as listed below:
- Proof of income
- Age proof
- Proof of bank account
- Pan card details
- Mobile number
The
application can also be done by filling an online form. The amount sanctioned
as loan is based on your income mentioned on your income proof i.e. salary
slip. This verification is done in order to make sure if the applicant is able
to repay the amount or not as there is nothing kept as security against the
loan. Once they are satisfied with the details you have furnished, the loan is
approved and amount is transferred in your account.
Things
to consider before applying for payday loan
- When you think of taking a payday loan, approach
an institution which grants quick loans on 24 X 7.
- See if their approval procedure is instant and
most probably online.
- There should be no hidden fees.
- Interests shouldn’t be very high.
- They must have flexible repayment terms.
- They should be protective about your data.
This is all about the payday loan.
Hopefully, this information will be useful for you in future if you think about
taking this loan.
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Created on Aug 31st 2018 00:54. Viewed 567 times.