A payday loan is a short-term loan that is supposed to be repaid as soon as you receive your next paycheck. Usually, it is a small amount, making it easier for the borrower to repay.
Payday loans might be a suitable option if you don't want to engage yourself in a long-term loan commitment. It is easy for borrowers to cope with their financial distress and repay a payday loan within the agreed time.
The approval duration of payday loans might vary based on your choice of lenders. Traditional lenders usually take more time. However, with online lenders, you can secure a payday loan as soon as one business day.
The expected repayment duration for payday loans is around two weeks. Besides, payday loans have high-interest rates, so it's difficult to repay them on time.
Though rollovers might seem a great way to lessen your burden, it means increased interest rates and fees. The longer you extend the payment period, the higher the interest rate.
Some lenders ask the borrowers to pay the interest amount only on the payment date and add another loan clause to the ongoing loan term. However, it means that when the borrowers repay the loan, they will repay the principal amount and the interest amount again.
Before opting for any such term, make sure you can repay the loan. Otherwise, you might be caught in a debt trap. Therefore, it is advised to repay the whole amount on the due date and not extend the repayment period to avoid financial pain.
Though personal loans are a great way to deal with financial problems, you must be skeptical about choosing lenders as there are a lot of scammers in the market.
iPaydayLoans is a credible lending platform that connects borrowers with potential lenders. If you are looking for same-day funding and a quick response, iPaydayLoans is here to help you. The application process of this platform is hassle-free, and you will be instantly connected with top lenders.
Conclusion
Payday loans have high-interest rates, and the repayment duration is short. Think thoroughly before requesting a payday loan. Make sure you can repay it within the agreed duration.