Direct lenders of short term loans in the UK

Lenders calling their loans “direct and short term” set themselves apart from, for instance, banks, which require an appointment on their premises for anyone applying for a loan. Banks then require a waiting period for a credit check and then a further waiting period for processing once an application to be approved. Banks also normally want security for the loans they give. In contrast to banks, direct payday lenders in the UK pride themselves on being able to process a loan ‘within minutes online’. Lenders such as The Quick Loan Shop or Peri-Peri Payday Loans, to list only two arbitrary lenders of many hundreds of payday lenders in the UK, believe they deliver a fair, informed and valuable service to people who are in need of quick cash. Payday lenders also give unsecured loans.

With modern technology, people desperate for cash due to an unpredictable emergency have the ability to obtain money within a few short hours. And all of this, as some of the payday lenders like to advertise, ‘from the comfort of your home’.

Payday lenders have their conditions, according to the rules and regulations set down:

  • The applicant has to be a resident of the UK
  • Lenders require the applicant to be employed or to have a regular income
  • The borrowers must have a valid UK bank account with a valid credit or debit card

  • Most payday lendersimpress upon their borrowers that it is important for them to repay their loans within the set time frame which is normally the next payday. Many legitimate direct payday lenders provide a cost calculator on their website encouraging their applicants to work out exactly what payments have to be made under the given time requirements. In this way there should be no surprises about repayment fees, added penalties for default or excessive interest rates due to non-repayment or because of loans being rolled over. Everything should be clearly laid out.

    However life is not always as perfect and logical as it should be. This is already obvious from the fact that people need financial help under conditions of regular employment. Life is full of unexpected and sometimes unpleasant surprises. People are not always truthful in their applications, for instance. People may hide a bad credit record or existing loans. They might overspend. They might avoid being contacted prior to repayment. A common problem is that individuals needing an emergency loan hardly ever have the luxury of time on their side. They need the loan badly and they need it now. This is a situation not conducive to studying the fine print. Only afterwards when the seriousness of their situation sets in, might they see the full implication.

    Payday lenders argue that they try to cover their tracks for all eventualities. They adequately inform their applicants about conditions. They encourage them to stick to the 30 days repayment period. Logically, the process of lending should run smoothly. However, life hardly ever runs smoothly, predictably or fairly. It is exactly these irregularities, as elsewhere in life that makes the process of lending and borrowing a difficult business.