Short Term Loans UK
Short term loans are designed for all residents of UK to help ease financial troubles. This is especially good for people who have financial challenges and could not cope without money before pay check comes in. However, because payday loan is short term loan, it attracts high rate of interests. For instance, if a borrower takes £100 as loan, he is likely to pay about £22 as interest on the loan borrowed.
People are free to apply for short term loan whether they have good credit scores or not. There are over 30 companies in UK where payday loans are being processed for residents. The number of lending institutions is still growing day by day. This is to show that a lot of people are making use of short term loans to solve their financial problems. It is better than the conventional banking methods of borrowing money because banks can take a lot of time before finally releasing the money. Payday loan is very fast and individuals can get hold on the money within 24 hours of processing.
However, borrowers are required to follow the instructions and procedures of acquiring loan depending on their next pay check. It is also required that borrowers must provide proper identification. There are laws in UK prohibiting lending institutions not to give out loans to people who do not provide a proper way of identifying themselves.
Borrowers of short term loans can retrieve their payment for up to 30 days if they are not able to pay it back on time. However, this attracts extra fee for the borrower. Again, lending institutions cannot take any illegal actions against borrowers if they are late in paying back the loans. It is not allowed by the law of United Kingdom. This is why lending institutions are required to make sure that borrowers have a good source of income before giving out loans. This is a sure guarantee that short term loans lenders will pay back their loans.