Next Day Loans
Next Day Loan Versus a Bank Loan
No matter how well you plan your monthly accounts, there may be times when an unexpected expenditure crops up that demands immediate fulfilment. You are left with no other option but to try for a loan. If you are looking for a short-term loan, you can choose between a bank loan and a next day loan, also known as the payday loan.
A bank loan will come with a lower rate of interest as compared to a next day loan but there is a catch and that is a bank loan takes time to be processed. So if you need immediate cash it may not serve your purpose. Then again, a bank will verify your credit ratings before extending a loan and if everything is not above board, you may not obtain the loan.
The other option, which is becoming increasingly popular, is the next day loan. You can avail of the loan immediately if you meet the following pre-requisites:
- You should be a salaried person having served in the same organization for at least 6 months and drawing a minimum salary of £ 1,000 per month.
- You should have an active checking account for all transactions and your salary check is deposited directly in your bank account.
- You should be at least 18 years old.
- You should be a permanent resident of the UK and should have resided at the same address for the past one year.
If you are in need of immediate cash, next day loan is the way out. Terms and conditions for repayment of loans vary from lender to lender but one thing that is common is that you would need to repay your loan once you get the salary of the up coming month. Accordingly, the companies would require you to deposit post-dated cheques.
The rate of interest charged by the lending companies for next day loans is a bit higher than what is charged by the banks. This is because the risk is also comparatively higher. The companies do not check your credit history before extending you the loan. Apart from the flat fee of around £29-30 per £100 borrowed, there are no other hidden charges.
If you are first timer, you may be advanced a lower amount of loan, say, £300 or £400. When you become a repeat customer, the loan amount may be increased by the lending company. Moreover, you can also negotiate the rate of interest and the amount of advance with the lender company if you do business with them regularly.