Payday Loans explained explains payday loans

Payday loans explained

Typically, payday loan lenders will charge £25 interest on top of every £100 borrowed. So the maximum amount you can borrow (£1,000), plus interest (£250) would be around £1,250 which you would have to pay back.

A payday loan is a viable option for someone who finds themselves in a bind financially and needs a short-term loan that will cover their expenses until they receive their next cheque. Before someone decides to agree to get a payday loan, it's useful to understand how the process works.

The process to getting a payday loan is typically done by navigating to a provider's site and submitting an application with data including name, address, bank account information and employment information. Once the application is approved, the company makes a deposit into the account on the same day so the funds can be used as needed.

Loans are not long-term and funds need to be repaid within 1-2 pay periods. The standard payday loan repayment term is one month. If an extension is required there are typically additional finance charges to take into consideration.

A borrower should be prepared to pay back the full amount of the loan and finance charges at the same time as when the next pay period comes around.

Limits are also imposed by companies that issue payday loans. If a borrower has used the service before, they may be able to get a larger amount while new users are limited until they've established themselves as reliable and able to repay the debt in a timely manner. Some services may charge an application fee or a fee if the funds are needed on the same day, some in as little as a few minutes. Interest rates may also rise if the payment is not made in full on the date agreed upon in the original agreement.


Same day loans for:

Here's how Same day loans can help you:

  • Get urgent or emergency cash
  • Stop your bank account going beyond it's overdraft limit
  • Pay off bills or keep up with monthly expenses
  • Or just to give your finances a bit more 'breathing space'

Apply today at!