Reasons for high demand of Pay Day loans
Pay Day Loans are in high demand these days. They have become the first choice for short term loans in metropolitan areas like Delhi NCR. These loans cater well to the needs of the present generation and are highly preferred over traditional loans.
There are various reasons for the high demand of these Short term finances. Some of them are listed below:
- Instant money
This provision of instant money makes these loans stand apart from other traditional modes of lending. The funds are released within 24 hours of application, and you do not need to commit to a lengthy agreement as the repayment period is maximum up to one month. These loans thus serve well in an emergency. They are different from credit cards or other loan alternatives; wherein processing takes a considerable period of time, and there is no surety if the application will be approved.
- Helpful during recession
These Short term loans become your helping hand during the recession when banks feel insecure and refuse to lend. These loans then help you in your survival when you need money to fulfill your daily needs and are short on cash. They help you meet out necessary expenditures.
- No collateral
All traditional loans given by banks and finance firms ask for collateral as a pre- requisite for borrowing from them. There is no such thing with payday loans. You just need to give a post dated cheque of the total amount to be paid to the lender. The amount includes both interest and principal amount.
- Simplified application process
The application process for acquiring these loans is very simple, and it is easy to gain both online and offline. You just need to give your basic personal information, contact details and bank account details for repayment. You won’t be asked to fill lengthy forms and submit various documents before they finally hand the cash to you.
- Alternative to traditional loans
They are healthy alternatives to conventional loans that have to repay over a longer time period. Although interest rate on payday loans is considerably higher, they turn out to be cheaper in the long run as there are no application or processing fees involved. When you pay less interest for a period lasting over years, you end up draining more money than you actually thought. Thus payday loans are better if you want money for a short time period.