Payday Loans

What are Payday Loans?

Payday loans are a form of short term borrowing, where the money you borrow is secured against your future income.

Conditions to Qualify for Payday Loans

Generally, to qualify for a payday loan:

• You must be at least 18 years old
• You must be in permanent employment and have a steady income
• You must have a UK bank account, and a valid debit card
• You must earn at least £750 net income per month

Advantages of Payday Loans

The following is a list of the main advantages of payday loans when compared to other forms of short term finance:

• Instant cash - usually within you bank account within 24 hours
• Quick application and approval process
• No need to explain your reasons for taking out the payday loan, unlike other personal loans
• Easy repayment - the amount you owe is deducted from your bank account on the agreed date using your debit card

Disadvantages of Payday Loans

Payday loans also have a number of disadvantages compared to other forms of short term finance:

• Payday loans incur interest at a very high rate
• Payday loans are a very short term source of finance, and are therefore not suitable for some purposes
• The amount which can be raised using payday loans is limited, relative to other types of loans