1. Understanding the different types of payday loans
When in a crucial financial crisis, payday loans come to your aid. Now that you are faced with such an
emergency and want to go for payday loans, you want to know the various types of loans that are
available.
Payday loans can be broadly divided into two categories – retail loans and online loans.
In the retail category, the one who wants to borrow will have to go to a payday loan shop to get the
loan. It is the conventional way where the borrower has to apply for the loan and submit all necessary
documents. These documents will then be scrutinized and the loan amount approved. In case of retail
payday loans, the borrower has to submit post-dated checks. This ensures the repayment as on the due
date, the amount will be automatically withdrawn from the borrower’s account by these checks.
The other category is the modern one, which is simple and fast. It is the online loans or internet loans. In
this type, the borrower does not have to go anywhere. He or she can apply for the online loans at the
comforts of his or her home. The application form has to be filled online and the documents also have to
be submitted online. On approval, the amount is directly transferred to the checking account. It is as
simple as that. In fact, you can also avail same day payday loans online, which are processed and
amount transferred on the very same day.
In both these types of payday loans, the basic requirements are that you are a salaried employee of 18
years or older and a citizen of the country. If you fulfill these clauses, then you can easily avail payday
loans either in a retail system or even online.