Concept_of_pay_day_loans:
Concept of pay day loans: People used to get money from money advance and local check cashing companies in the past when they need money in the situations of emergency. This is the epoch of technology and everything in this world has changed a lot. Same is the case in the field of loans as well because now, people don’t need to get money in the state of emergency from these organizations. There are many websites available on the internet which provides the services of Payday Loans. This concept is very easy to understand. People in case of emergency can get instant cash from financial institutions by providing their bank account details. As a result the loan amount will be automatically deducted from their bank accounts on the very day they receive their monthly salaries.
These types of loans are called fast payday loans because a person can easily get instant cash in the hour of need. Basically, a person needs to find a legitimate pay day loan company. After finding the company, a person is supposed to submit an application in which all the details about the loan are mentioned. The Application is then analyzed in which some things are considered by the company. Credit rank of a person is considered specifically. If a person has a good credit rank then the application is easily accepted. Most of the times, the application can be rejected if a person doesn’t have a good credit rank.
It has been observed that the funds are transferred to our account within 6 to 12 hours after the acceptance of the application. Interest rate is also an important factor in these loans because if the payment is returned earlier then the interest rate will be low. However, it increases if the payments are not returned in time.
There are many companies working online and offline to provide pay day loans. But a person has to find a legitimate company because there are many fraudulent companies working in the markets. These companies charge high interest rates along with many other hidden charges in order to get extra profit from their customers.
Singal, N., and Jeffery, R. (2008). Qualitative Research Skills Workshop: A Facilitator's Reference Manual, http://oer.educ.cam.ac.uk/wiki/RECOUP, Cambridge: RECOUP (Research Consortium on Educational Outcomes and Poverty, http://recoup.educ.cam.ac.uk/). CC BY-NC-SA 4.0. (original page)
