With the increase in the cost of tuition, books, medical bills as well as living expenses people are often in financial burden. Short term loans or payday loans are an excellent source of funds for those who’re struggling to keep up with their living expenses. The amount of loan may not be high, but at least it helps in overcoming financial burden.
Short-term loans are also known as payday loans which are given instantly without any hassle. Once you receive the loan, you’re supposed to pay it back with your next payday or salary day. In case you’re unable to repay, they will still give you other easier payment plans. However, there may be a certain late charge added to your next instalments which will make it higher.
The biggest drawback of short-term loan is its interest rate. This is because the tenure for repayment is small. Lenders are running a business by lending funds to needy people. They too need to earn profit from this business which they earn from the interest. Had it been a long tenure loan, the interest would have been less.
LoanPig provides short term loans to people at a high acceptance rate. Their business runs online and therefore the fund transfer and loan approval is quick. The service is available every time so you can contact hem at any point in time. They believe in transparency and build trust among their customers by publishing al terms and conditions on their website LoanPig.
Every lender approves a loan after getting certain documents. These documents will decide of the person is eligible for the loan or not. The eligibility criteria are not meant to discriminate against anyone. It is just to understand if the person can repay in the future or is a liability. The eligibility criteria are a rule set by FCA. If any lender breaches this regulation, they will face severe action set by the regulator.
Here are certain eligibility criteria –
- The person applying for the loan should be 18 years and above. To check that, a copy ID proof like a driver’s license is requested.
- Payday loan means a loan that will be repaid on the first salary day. Therefore, the person applying for a loan should have a full-time or part-time job to repay the amount which is determined by the bank statement and employer information.
- You must be the resident of the country where you’re seeking a loan. This can be checked through electoral roll registry details.
- All short-term loan transactions are done online whether it is transferring funds or repayment. Therefore, the borrower should have a bank account along with a debit card.
- Any kind of communication is done through email from where you send the application form and other documents. You rarely get calls from the borrower, still, they ask for mobile number ad email for reference.
Some creditors also check credit scores, so you must keep your credit score in good shape. Hence, not all loan applications are approved.