payday loan

What is Payday Loan? All you need to know.

Have you heard the term "Payday Loan" but don't know much about it. In this blog, we will describe all things you need to know about it.

What is Payday Loan? All you need to know.

Written by Roopya

The word “payday” sounds incredibly excellent as that’s the time when you get paid for an entire month of hard work and celebrate our hardships. However, your paychecks may not be sufficient sometimes to meet up unplanned expenses and put you in the position to need money to pay uncertain bills right a few days before your next payday. Now whom would you ask for a low yet unbearable quantum of financial help only for a few days? Well, a payday loan can help you to survive that minor emergency.

Payday loan

What Is A Payday Loan?

A payday loan is an instant personal loan that has a low credit limit and a short tenure with a rate of interest charged per day. The limits, interest rates, and tenures may vary from bank to bank, but the features are beneficial.

  • Payday loans don’t need collateral for approval.
  • A payday loan lender will ask for very minimal documents like your bank statement, ID proofs, etc., and take the least time for documentation.
  • You get instant approval and quick disbursement of the loan quantum.
  • Lenders don’t check your credit history or credit score, so a poor credit score or credit history won’t be an obstacle to get a payday loan.
  •  You can repay the loan with an interest charged per day.
  • And as the name suggests, you can repay the loan amount right after getting your next paycheck.

How Does A Payday Loan Work?

You may have an urgent requirement of money to pay some uninvited expense that’s not huge in quantum, but you still need help to cover it up. Payday loans are appropriate to tackle those situations and stand by your side. For example, you need Rs. 20,000, to fix or replace your laptop, but your payday is five days away. Now, this emergency can’t wait as you are working from home and need the laptop to finish your tasks. Hence, a payday loan can be your savior. You can take an instant personal loan amounting to Rs. 20,000 only for five days @ 1% interest per day. So you will repay-

Principle + Total Interest @ 1%/Day = Rs.{20,000+(20,000×1%x5)}

= Rs.{20,000+1,000}

= Rs.21,000

In this case, you may borrow the amount for five days or more, you need to pay the interest accordingly, and the lender would charge late fees and penalties in addition to that interest for the delays in the repayment.

Steps To Get A Payday Loan

Step 1- Go to the online credit portal of Roopya and compare multiple lenders.
Step 2- Select a lender and apply for the loan by putting your personal details on the portal.
Step 3- Attach the required documents.
Step 4- Get instant approval of your loan quantum and the amount will be credited to your account.

Payday Loan Alternatives

A payday loan is an ultimate option to get financial help for sudden and minor financial needs. As emergencies are unavoidable, you can’t control that, but you can also consider the following things to be prepared or get help.

  1. Keep an eye on your monthly expenses to save a considerable amount each month.
  2. Ask your friends or family members to lend you financial help so that you can survive those emergencies.
  3. Take the least amount of personal loan so that you can pay that through easy installments.
  4. Use your credit card at that moment and remit the amount after getting your paycheck.
  5. Ask your employer whether he or she can lend you financial help.
  6. You can also consider a personal line of credit to get financial assistance during emergencies, and repay the withdrawn amount with interest.

As long as Roopya is at your service, you can always ask us for minor to major financial help, and we will be glad to lend you a helping hand to cover any financial need. Apply here.

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