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Payday Loan – What Does the Future Hold for This Loan Type?

2020-10-31 By Maya Pillai

Payday Loan – What Does the Future Hold for This Loan Type?

Payday loans are one of the most opted kinds of loans from many people today. It has become a lifeline for people who experience a need for money anytime in the month. From the time the payday loan type was introduced, it has been subjected to constant changes, so that it is upgraded to the version of a customer friendly loan type.

If you are willing to apply for payday loans, then all you have to do is visit LoanPig. LoanPig is one of the institutions that offer payday and other such short-term loans for the people in need of urgent amounts. They operate from UK and can offer loans at affordable interest rates for borrowers. Feel free to visit their website to learn more about their working principle.

Payday Loan

Few years ago, the media would report about the news regarding extortionate interest rates, ridiculous fees, irresponsible lending of money and charges for the loan, and how such issues have caused many people to lose their job, property and other such assets. However, as people became more aware about the rules and regulations about money borrowing, they started questioning the ways of the money lenders.

Years later, the money lending companies offering payday loans started coming up with such options for borrowers, which were quite beneficial for their own good. The rules also stated some statues where the money lenders are not supposed to use any means to harm the borrowers, when it comes to the situation wherein the borrower fails to pay the amount in time.

Payday Loan – The Future of Money Lending

You can find many money lending institutions that follow a responsible and systematic way of offering money to the people in need of financial aid. There are many points that can prove that the payday loan type will become the future of the short-term money borrowing process and are listed below.

  • The lender of short-term amounts is not supposed to charge more than 80p on a daily basis, for the loan amount of £100 borrowed by the person in need of financial aid.
  • If the borrower fails to pay the amount within the due date, then the money lender is not supposed to charge the amount more than £15, as the delay payment fee.
  • The interest amount that is charged by the money lender should not exceed more than the amount that is borrowed by a borrower. For instance, if the loan amount is £100, then the interest amount should not exceed more than £100.

When the UK government added many such rules in the favour of the borrowers, the loan offering companies started to hand over their license to lend money, back to the government. The money lenders thought that the rules were against their work ethics and it would not fetch them the profit that they were looking for in the money lending business. However, the rules remained the same and were never changed in the favour of the money lenders.

The money borrowers were provided with extended time duration to clear their payday loan, so that they do not have to pay extra money, in the form of the rate of interest for the money borrowed. Overall, payday loans became a boon for the people who are in need of urgent financial aid.

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