Lending Process. How it works.
A payday loan works where the client will write a post dated cheque based on the amount they wish to borrow, plus any fees that may be charged. This is typically £30 based on every £100 borrowed.
The loan terms are then agreed upon, and the repayment date is set to the regular pay date of your wages. It is possible to renew the loan and set a new pay date, but the interest charge has to be paid each time this occurs.
Usually, the borrower will return to the store to pay the loan in full on the pay date, but the finance company can process the cheque through electronic means and withdraw the funds from their account. Failure to pay this cheque can result in additional fees being charged by the bank to cover the costs.
There are now ways to apply for payday loan online. This works by the borrower filling out a simple form, and give your personal details such as name, address, place of work and current wage.
A representative will then contact you within one to three working days to finalise all the details and guarantee that the information submitted is correct. It may be necessary to forward documents as proof of your details, but 15.08.2007in most cases this does not happen.
Your application should be accepted if you are over 18 years of age, reside in the country in which you applied for the payday loan, and receive a regular income set at a certain amount that the company specifies in their information section.
If the application is accepted, the loan amount will be transferred securely into your designated bank account, and will be paid through the same system on the designated pay date.
Keeping a note of the financial information contained in the loan is important, as many people often do not have the correct funds in the bank at the time of repayment.
