Payday Loan also called a quick loan
A payday loan is one type of so-called quick loan. It is currently offered by non-banking companies. This type of non-bank loans are non-purpose. So the client can use the money for practically anything.
A quick payday loan is intended for almost everyone. As the name suggests, applicants are people who have a few days before payday and need to pay unexpected expenses or are late in payouts. A payday loan almost immediately is often a smaller amount to cover these unexpected expenses. The loan applicant will receive the money almost immediately before the payout.
A quick payday loan is therefore a smaller loan that has a maturity of several weeks to months. Money is available to the applicant very quickly, in minutes to hours. It should be noted that one should be cautious even at low amounts. Even small loans can cause large debts.
How to arrange a payday loan and to whom is it intended?
Applying for non-bank payday loan and its handling is easy and fast. Non-banking companies also offer to arrange a pre-pay loan without a register also online, at a branch or via telephone contact.
Often quick payday loans are offered without a debtor register or loans without proof of income. The applicant can thus be kept in the debtors’ register and still receive the loan.
Some providers transfer money to the client within 30 minutes of the application’s approval. If the applicant needs to borrow on a weekend when bank transactions are not in progress, there is a variant of the weekend loan. A representative of the company will come home to the applicant, sign a contract with him and hand over the requested amount. SMS Loan can work similarly.
A quick pre-pay loan, as well as a loan for the unemployed, does not require proof of the applicant’s income from employment, and is therefore suitable for both pensioners, mothers, the unemployed and students. However, they should consider whether or not they will benefit from some of the loans for students, which are usually associated with more favorable parameters.
To obtain a non-bank loan before payout, the legal age of the applicant, citizenship of the Czech Republic and often own bank account are required.
Advantages and disadvantages of quick payday loans
Like any bank and non-bank loan, a payday loan almost immediately has its advantages and disadvantages. Below is an overview of the main advantages and disadvantages:
- A quick way to get a smaller amount (unlike banks)
- Non-purpose loan
- The loan can also be obtained with an entry in the debtors register
- Fast processing, easy filling of forms
- For some companies you get your first free loan
- The company also offers the option of getting money at the weekend (the so-called weekend loan)
- At longer maturities, interest rates and APRCs are high
- Shorter maturity
- High fees for extending maturity
- Often fees for arranging and keeping loans
- For some companies, only the lower amount can be borrowed for the first time
- Verification of your bank account (often CZK 1)
As can be seen from the above-mentioned advantages and disadvantages, it is a loan that is suitable for clients who are waiting for a payment and need to pay, for example, the repair of the appliance. If the applicant is thinking about a higher amount, it is more necessary to think about another consumer loan.
If the applicant needs smaller sums more often, for example almost every time before the payout, he may consider setting up an overdraft.
Payday loan providers
Some non-banking companies that provide these payday loans almost immediately on account also offer the so-called first free loans. Thus, loans of lower amounts without fees and interest. Loans that reach a maximum of 5,000 qualify as micro-loans. They have similar conditions, advantages and disadvantages as these loans before payout without documenting the registry and are also easy to reach.