Payday loans can be defined as a loan that is made at a very high cost, in the short term and that is due on a specific day. It does not have any type of restriction regarding the interest rates, and more specifically with the annual percentage rate. Certain characteristics should be noted, they are described below.
The limit to be able to request a payday loan is 1000 pounds.
This payment will be made on the day agreed in principle, but it can also be when you have received money from a specific source, such as a pension or a check, among other possibilities. In general, the due date of the loan payment is usually between 2 and 4 weeks, but it should be established the day you negotiate with the lender.
How to pay the loan
The debtor will receive a check that includes the loan amount and the applied fees. The second possibility is to authorise the lender to collect electronically and directly from the bank account. So, if the loan is not paid on the stipulated date, the lender will do it directly.
It does not take into account the capacity that exists to proceed with the payment
Therefore, it does not add value if you have other financial problems, such as other types of loans or mortgages, for example.
All types of loan funds can be provided by a cash check, an electronic account deposit, or by credits to your prepaid debit card.
Possibility of refinancing
Although it is legislated so that the return of the borrowed money is made immediately, it is possible, yes, if it is legal to refinance the loan with the lender. The debtor will only pay the charges in this case and the due date will be modified.
Cost of the loan
That is, what will have to be paid for using such type of loan. On average it is usually about £25 for every £100 borrowed.