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How to Avail Payday Loans for Savings Account

Scholasticus K
Payday loans for savings account is a credit facility for individuals to be able to repay loans in a short period. Here is an explanation on how to avail payday loans for savings accounts.
Life is full of surprises, especially when spending money. Unplanned expenditure can be of any nature. It can be a medical emergency, urgent repair work at home, or even a discount sale in a remarkably good mall. To meet the demands of customers, banks, finance organizations, lending institutions have come up with new credit creation ideas and facilities.
In certain situations, a person facing an unexpected expense or cash crunch would want a quick loan that could be repayed in some time. Payday loans solve this problem, they help cover up cash deficiency in such situations. Due to this loan, one does not have to wait for the pay day (day when one receives the periodic salary) before spending money.

Payday Loans

  • A payday loan is a credit creation facility, initiated by lending institutions to provide fast-credit to people.
  • It is usually applied for, when a person is in need of an amount of money that is relatively small.
  • As compared to a normal loan like real estate loans, amount of payday loan is small.
  • Time period of payday loan lasts up to next pay day.

Payday Loans for Savings Account

  • A payday loan sanctioned on the basis of a savings account is called a payday loan for savings account. This is usually sanctioned by the bank, where one has his savings account.
  • The method to avail a payday loan for savings account is relatively simple. Most banks have made it available in the form of on-line applications.
  • If not, then one can get the form from the bank itself. This form demands age, contact, and identity proof of applicant. The employment status and periodic income of applicant are verified by the bank.
  • The periodic deposits made into savings account are also considered. Some lenders also prefer to verify the applicant's employment status with the employer.
  • Verification process is simple and fast, and is usually completed within 24 hours. Usage of a better database and modern computerized technology has made it even more swift.
  • Once the process of verification is complete, amount of loan that has been applied for, is deposited into savings account and details of transaction are communicated to the applicant.
  • Sometimes, if amount exceeds that value of periodic pay check, credit history of that applicant is evaluated. In case of a bad credit history, the whole amount is not sanctioned.
  • If the applicant is availing service from some other lender (other than the bank that houses the savings account), then the process of verification takes a little longer.
  • If one has asked a payday loan from the same bank where he has a savings account, the amount is deducted from the account after the pay check is received. Interest on payday loans is low.
  • Interest rates might be a little higher. In normal cases, lender does not ask security or collateral. For very bad credit history, a car or personal computer is demanded.
A payday loan is certainly an excellent facility that can be availed. However, a good credit history has benefits of its own.