Frequently Asked Questions

What are payday loans?

If one is going through a financial emergency and has no other source of finance, a payday loan will be very helpful. Payday loan is a short term loan which is available for smaller sums in the range of £80 to £500.

What is the rate of interest that I will get on the payday loan?

The rate of interest charged on payday loans is generally higher than the regular loans because of the short term. However, each borrower’s rate of interest will vary with his personal credit circumstances.

Do I have to put any collateral for the payday loan?

The collateral for a payday loan is a post-dated cheque. This cheque will act as the security for the loan. When the term of the loan expires, the lender will present the cheque to the borrowers bank and recover his amount.

What is the amount that I can get through payday loans?

As mentioned earlier, a person can easily get an amount between £80 to £500. If a borrower wants, he can also draw up to £1200.

Do I need to have a good credit history for getting payday loans?

No, having a good credit history is preferable but not necessary. So people with bad credit history too are eligible for competitive rate payday loans from Payday Loans UK.