3 benefits of a payday loan.

Posted by adairsawyer on October 23rd, 2011

Getting a loan out of a bank is not the easiest of tasks. You need to apply for a loan by filling up an application form. Then there is the need to submit different documents related to your personal and employment details. The bank then takes a week or more to verify all the documents and check your credit history. If everything is in order they may go ahead and give you a loan. However, the scenario is completely different when you apply for a payday loan. Given below are three benefits of payday loans that make them better than bank loans.

No documentation

When you apply for a payday loan there are no documents that you need to submit. To apply for this loan you just have to apply online. Most of the professional providers of payday loans now have their websites. And all these websites have an online application form. The online application form captures your personal, employment and bank details. After you are through filling up the form you need to click the submit button and wait for the approval.

Approval for a payday loan comes fast. It is within minutes of you applying for the loan. The providers don’t ask for any documents. So, even when you have a negative credit rating or declared bankruptcy, they don’t have any bearing on your loan getting approved.

Fast disbursal

Like the application process the disbursal process of your payday loan is also incredibly fast. Depending on the state of your residence, it is possible for you to get your account credited with the loan amount on the same day of your application. And when you apply on weekends and such the loan disbursal takes all of 2 working days. There is no financial institution in Canada that can disburse loans this fast.

One time payoff

The third advantage of a payday loan is that it has a one-time payoff. No matter when you take the loan, you need to pay it off on your next payday. When you apply for a payday loan you need to inform the provider about your payday. On this particular day they debit your account for the principal and interest combined and your loan is paid off.

The advantage you get here is that there are no monthly loan payments to be bothered about. You take a payday loan and it gets paid off in one go. And when you are regular about paying off your payday loan you also become eligible in future for more loans of larger amounts.

Another advantage of this one-time payoff is that the interest doesn’t pinch you. You may be aware of the fact that the interest rate of payday loans is higher than bank loans. However, you don’t pay interest for a large tenure and hence the figure doesn’t seem large.

Apply for a payday loan today and reap the benefits. Handle your loan well and you will never have a cash crunch anytime in future.

There are many advantages of a payday loan that you simply cannot ignore. Because such a loan makes life easy for so many people, the amount of disbursals has always been going up.