Facts About Pay Day Loans
These are loans which are very short term in nature and are sought by people; to sort out their emergencies or needs that cannot wait until the next day they get their money (from whichever source). The loans are easy to apply for (which is why they are highly considered hassle free loans) and are also very easy to qualify.
Safety and security of these loans is dependent on the security measures the lenders place in their systems; as the loans are applied for from the Internet. This means that the lender has to protect his/ her information as well as that of the borrower (from any unauthorized access).
One of the main reasons why these loans are referred to as online is the fact that: they are applied for online processed online and the money wired directly into the bank account of the borrower without the need for the borrower and the lender to meet in person. Potential loan applicants visit the website of payday lenders; from where they get all information concerning the loan (the minimum and the maximum amount of money lent by that particular lender their interest rates repayment duration and the loan application form). From this information the borrower can decide how much they want and then fill in their details on the loan application form provided on the same site. The form requires only basic information which is directly related to the processing and approval of the loans as well as money disbursement. This include: the amount the lender needs their name residency and the bank account they wish their money to be sent to.
Online pay day loans do not need any collateral to secure them and are as such regarded as unsecured loans. This means that the borrower does not (unlike in loans from other lenders/ lending institutions) have to provide any assets/ properties to the lender to secure the loans. They are hence quite affordable to almost everyone as once cannot be disqualified for lack of collateral.
Additional loans information can be also found at CNN news.
In addition to the absence of security for the loans making them available and affordable to everyone it reduces the time that would have been spent verifying the said collateral; by the lender or the traveling costs which the lender or the borrower would have been forced to incur during or towards collateral verification. With much time saved the loan processing takes place much faster; making approval almost instant.
The loans are also highly regarded as trouble/ hassle free because apart from the lack of collateral there are: no credit checks on the borrower no checks on their financial or employment history and no consideration of any other bad credit status to disqualify the borrower form getting the loan. As such people who have been disqualified or have slim chances of qualifying for loans from other lenders due to bad credit status can seek refuge in these loans.
Disbursement of the funds
Once the money has been approved it is directly sent into the bank account of the borrower; eliminating the traditional long process of writing cheques (which are mailed to the borrower or collected by the same and then submitted into their banks to wait maturity). The money is thus made available to the borrower soonest so that they can meet their needs as soon as possible.
Interest rates of online PaydayRelay.com for payday loans are considered to be relatively high; which is defended by the fact that the loans are themselves of not-so-high amounts and are repaid within a short duration of time.