Do you have a budget calculation app or do you use a third-party app or a mobile wallet? If yes, then probably you must be receiving notification to bridge up the month-end cash crunch by making an easy credit offering. Well, such type of short-term loan is also called the payday loan and in other words microloan. The tenure of the loan can vary from 1 to 3 months and is the most convenient option one can choose.

Now simply because the credit is available easily doesn’t mean you can start borrowing through payday loans without being aware of such products. That is why it is important to know about the benefits and the rate or the charges that you may have to pay off once you are entitled to receive the loan.

If your application is all clean then money would get disbursed to your bank account in less than an hour. But if there is any kind of gaps in the application then the company may have to verify a few things that may delay the overall disbursal.

Why take a payday loan?

The best part of such app-based loans is the convenience and ease it offers. Other than this, listed are some of the benefits you need to know:

Hassle-free application:

All you have to do is download the app or log in to the site of the company. Make sure you fill-up the form and then upload the latest bank statement or payslip. You need to also have identity proof or address proof at the time of application.

Paperless work:

As compared to regular personal loans, the reason why this type of loan is best is that all paperless transactions are conducted. As long as you have all the papers in order in the digital format, the money will then be credited to the bank account in less than one hour. The verification background further will be done instantly through a video call and then the KYC process will be finished electronically

Flexible amount of loan:

It is possible for you to borrow the amount as per the requirement but not more than what you basically earn and what your repayment capacity is. This clearly tells you that you get an idea to pay off the loan within your reach without any hassle.

Conclusion

Just the way personal loans are used, you can use payday loans for many reasons. Be it to clear off the credit card due to pay the school fees and fund the medical emergency. But make sure all the documents you have are valid.