The instant payday loan has been available for several years now. Borrowing of this nature was actually first introduced around the early 1990’s when the ability to borrow a small sum of money was very limited. Consumers who needed such a resource were limited to the likes of overdrafts and store front lenders and effectively did not have direct access to a dedicated borrowing resource of this specific nature. This is why the instant payday loan was instantly a hit with consumers. Unlike ever before consumers had been given the ability to apply for a loan which was specifically small in value and therefore different to other lenders which existed at the time. Since their introduction the instant payday loan has changed and evolved and the modern day product is arguably better than ever before. Designed to be clear, discreet and flexible this type of borrowing allows consumers several different routes to small term and small value borrowing options.
The classic type of instant payday loan has in the vast majority of lenders cases now been replaced by a more choice driven product but that is not to say it is not still a firm customer favourite. The product in question is one of a very clear and rigid repayment option, with successful applicants agreeing to simple repay their loan as a single and one-off repayment. This is actually where the term ‘payday’ loan was born from. The instant payday loan allows customers to borrow until the date when their next pay date arrives, meaning the term of the agreement is never any longer than a month’s period. The loans on offer have pretty much stayed true to form, with customers being able to borrow between £100.00 and £300.00 in a general sense and some customers being able to be considered for larger loan values, as much as £500.00 or £750.00 for example. When it comes to time for repayment, a customer of the classic instant payday loan must repay not only the loan value but the interest charged for the period in addition as one single and one-off amount.
The modern day version of the instant payday loan, as mentioned above, is an adapted version of the classic product and as such has been altered to allow for more flexible repayment alternatives. It is for this reason that many people refer to this modern day product as the instalment loan. Like the classic payday loan these loans allow customers to borrow between £100.00 and £750.00 normally but the repayment options are more varied. This means should it not be affordable to repay the loan as a single and often sizable repayment amount, there are monthly repayment terms available instead. Depending on the requirements of the customer the is plenty of choice available, whether that be a 3 month term or a 6 month term for example or in fact anything in-between. Many consumer prefer the resources of instalment based instant payday loan options thanks to the added flexibility they offer.