Traditionally, depending upon the size of the loan and affordability, borrowers can choose to repay personal and secured loans over a period of 1 to 25 years. However, in the last decade or so, the country has seen huge market growth for loans whose repayment period falls short of 12 months. Some of these short term loans in UK can be paid back even in 30 days.
These short term instalment loans are gaining popularity because of their convenience, flexibility of repayment and many other benefits. But, there are many pitfalls attached with them as well, which one must take into account before applying for these loans.
Let us discuss the pros and cons of short term payday loans:
• Flexibility: This is the area where payday loans score full marks with the customers. The loans can be arranged at any given point of day and there is absolutely no restriction on the borrower regarding their usage. The amount gets credited directly into the borrower’s bank account and without the unwanted hassle of credit checks.
• Speed: Another big positive factor of payday loans is the speed. A borrower can get access to the required amount within a few minutes after filling up the online form. Some lenders deposit the amount in the borrower’s account in an hour, whereas some can take up to 24 hours. But the time period never goes beyond that.
• Loan Size: The maximum amount that can be borrowed from payday lenders doesn’t generally exceed 1000 pounds. This is both a good news and bad. It is good because borrowers can easily repay shorter sums. But, if you require more money than 1000 pounds, then payday loans won’t be able to help you.
• Cost: This is the area where payday loans score poorly with the customers, as they are generally pretty expensive.
• Late fees and overheads: Well, if you default on your payday loan, then lenders can charge you hefty sum as late fees and can also add interest on a per day basis. So, it is better that you apply for this loan only in extreme financial emergencies and make sure that you pay it back on time.
For further details about Instalment loans please visit the website.
broadstevens 