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Payday Loans – A Complete Overview

May 13th, 2012

Payday Loan is the procedure which quickly comes to minds when some ones need money in emergency. It is a very easy for all those who require funds for several unforeseen expense similar to a doctor invoice or some type of car mend costs. A payday loan is a kind of small and short time period loan which is issued against customer next pay.

Due to newest banking trends it is now very easy to apply and get payday loans. It may involve some kind of verifications through banks and Employees Company but there are many companies who emit verifications and issue loans. The procedure is that borrower just visit the payday loan lender for loans and give a check to the lender in the full amount of loan with the fees of that company at the mentioned date borrower is expected to repay the loan by himself going to bank/ company. If he does not go to company at that date lender/bank may redeem that borrower’s given check. If check bounces borrowers have to pay fine to that company.

  • Payday Loans have many advantages. First and a very appealing one is the instant cash. You get cash whenever you need it No wait at all.
  • Payday loans  gives you the opportunity that if you apply for the loan for the shortest time period like one or two weeks you will be face negligible interests charges.
  • Fast turn around is also very appealing feature. You get approval on your loan applications within 24 hours time period.
  • It is also very easy to apply for loans. There are no old long traditional bank loan applications here. Anyone with age above 18 years and pay can apply for this loan.
  • One more very important thing is that prepay the loan and you will get rid of interest and late payment charges.
  • Other benefits are secrecy of loan; even first loans can be big in amount, completely online procedure and no documentation requirement at all.
  • Although Payday loans have many advantages and it is the best money giving solution in emergencies. But still it is always very good to save money for the bad times and try to avoid loans. Like all other systems payday system is also reported to have some disadvantages some of which are mentioned below.
  • Interest rate is very high for payday loans. At times this interest rate is 300% + of the payday loan. And if get failed to pay loan at time interest rate will keep on increasing.
  • On of the very unfortunate  fact is that people get so badly trapped in payday loans cycle instead of planning and saving money for the future. Problems are always life time problems how some short time solution can solve them? One you take payday loans you will keep taking them for your lifecycle.

You should try to avoid loans whatever of type they are. Learn to save for future. Still if you come across an emergency and you are not left for any other choice than payday loans then make sure that you are not going to make it your habit to take loans for every need.

 

Personal Loans to Make a Personalized Financial Agenda

May 8th, 2012

Personal loans is a facility provided by many banks now a days .This is a very unique and appealing feature of banks that they provide us the money when we require somewhat extremely right away and do not have sufficient cash for that. At this moment, we may benefit feature of personal loans that is provided by the banks on particular necessities. Payday loans are one of the fastest and mostly preferable personal loans now days.

Personal loans have many good features which have made them very popular all over the world. Flexible Time duration, Flexible range of loan amount, Easy and small installments, No guarantee requirement for loan, Easy documentation procedure and affordable bank fees are the prominent features of personal loans.

Like all other loans personal loans are also supposed to be returned. Time is decided after which loan will be returned back and it is known as Loan term. Personal loans are of two types: One is known as secured personal loans and second one is called as unsecured personal loans. Secured personal loans are those one which are issued against some kind of security like property documents etc .Whereas unsecured loans are issued without any security and is getting very popular now days.

Here is the question which will be coming to the minds if there is a facility of unsecured loans who are the stupid who apply for secured loans by giving their property documents to banks? There is twist in the story and that is there is a very high interest rate associated with the unsecured loans and people take them only when they have no other choice.

There is also a very important that interest on personal loans are both variable and fixed interests Variable interests are good if the interest rate in market falls but it would be worst if interest rate increases in market. Fixed interest rates are thus preferable.

Personal loans are said to be the best loans if you are going to borrow them for less than ten years time period. Personal loans have conditions very similar to your circumstances so you just borrow money any pay back .No big issues involve.

Personal loans are given to any person with age above 18 years and with a job. You are supposed to mention your current company and bank amount statements .Procedure to apply for a loan is also very easy. Online forms are available. And many banks offer the whole procedure to be done online as well.

 It is also recommended that try to select interest rate according to market trends. There are times when values on stock exchange are expected to rise and they surely do and there are also the times when stock exchange is down And values in all fields will fall. This is the time when you should go for variable interest rates keeping your loan term in to your mind. But whatever you are going to select make sure that you have the knowledge of stock exchange rise and fall. If you do not know much about it, then it is preferable to go for fixed interest rate loans.