Instant payday loans are a manner of borrowing a small sum of money over a pre-agreed short period of repayment. The principle behind these loans is to give discreet and quick access to a small borrowing resource without the need to complete reels of paperwork and a lengthy application process. This is why instant payday loans offer a completely different service to that of larger credit providers, such as a bank loan. Whereas for these larger suppliers, you would expect to have to complete a somewhat time consuming process of approval, in the instance of instant payday loans the process is more compact; given the sums of money being considered for lending. Generally speaking the loans being considered here are for sums ranging from £100.00 to £300.00 typically but some instant payday loans lenders do consider loans up to £500.00. The repayment terms offered are thankfully flexible which means there is a good selection of monthly instalments to choose from. Let’s today look at instant payday loans in more detail and in doing so understand what exactly we can expect from them.
As mentioned above instant payday loans aim to offer a fuss free service for borrowing only a small sum of money. This is primarily achieved via the means of an online application form. The application forms are designed to be clear and easy to follow and can usually be completed in as little as 10 minutes. Once the application is submitted it is common that lenders will deliver the decision as to the success of the application in as little as an hour but certainly the same working day. During the application steps the lender is aiming to gather all of the information needed to make an informed lending decision. Primarily lenders want to do this without asking for additional supporting documentation from the customer. There will be instances where instant payday loans lenders will have to ask for additional documentation and this will be to verify an area of the application process that could not be done automatically. There are many electronic checks that take place for these applications and the use of them makes intelligent and informed decisions concerning the outcome of the loan request.
Although named as instant payday loans the most important factor for these lenders is not that of speed and instead of making sensible and affordable lending decisions with the individual needs of applicants in mind. This means considering the applicant’s ability to repay the loan requested when compared to existing monthly commitments. This could mean rent, travel costs or of course, existing credit commitments for some customers. Lenders of these loans will continue to keep applicants up to date as to the progression of the application and usually do so via email. In instances where extra information is needed or as mentioned, further documentation, it is likely that lenders will email and also call to ensure the applicant is fully aware of the requirements needed to progress their application.