List Of Top Online Payday Lenders

People sometimes struggle to make their ends meet, especially during the middle of the month. Insufficient income coupled with high expenses and rising prices of goods and services can add to financial problems. Under such difficult financial circumstances many people opt for payday loans.

A payday loan is a short-term unsecured loan that carries high interest rates. Usually, the principal amount lent out is small but must be returned along with interest within seven to 60 days of time. Also called a salary loan, payroll loan or cash advance loan, these loans are typically based on how much one earns. They are unsecured by nature and are extended to working individuals if they show proof of income.

The principal amount of the payday loan is a portion of the borrower’s next paycheck. Quick cash advances are the biggest advantage of these loans but those willing to enjoy these must be aware of the timely repayments. A missed repayment by the next payday increases the amount of each loan, finally pushing the borrower into a debt trap.

In spite of its bad reputation, payday loans are a saviour for many. Some of the top online payday loan providers in India are:

• ATD MONEY:

ATD MONEY is a technology-based platform facilitating loans from its NBFC partners as per loan terms agreed between the NBFC and customers. Along with instant personal loans and small retail loans, ATD MONEY offers instant payday loans of up to Rs. 50,000 to Indian citizens who are above 18 years of age. To qualify for these loans applicants must have a minimum monthly salary of Rs 18,000. The repayment tenure of payday loans at ATD MONEY is 91 to 365 days with no prepayment charges.

• Loanbaba:

At Loanbaba, one can get a quick cash advance loan with an interest rate as low as 0.1% per day. Since there is no restriction on the fund’s utilization, the proceeds can be used for any purpose, both personal and business.
Borrowers can get between Rs 10,000 and Rs 50,000 and in some cases up to Rs 1 lakh. The approved amount is quickly transferred to the borrower’s account in a couple of minutes. Since it is a short-term loan, the tenor of the loan is between 30 days and 180 days.

Payday loans can be applied online either directly from the lender itself or through a lender-matching platform. Borrowers must provide their account number for the lenders to deposit the proceeds and to enable them to collect the due amount on the loan expiry date. When the collection due date arrives, the online lender sends an online request. If the borrower is unable to repay the loan by the due date, a request for a rollover must be done.

Payday loans are not usually reported to major credit bureaus. So, paying the loan on time does not help to build a positive credit report. But a case of a default is always reported to major credit bureaus. Additionally, payday loans create a vicious cycle of debt with the principal loan amount rolling over to the next month's bill. Failing to clear off the debt on time can add to financial woes.

So, if one is facing serious cash crunches, it will be wise to look for alternative funding solutions. Payday loans can be a source of immediate relief but it is not a solution for the long term.

Conclusion

Payday loans in India are used by salaried people who face short-term cash flow troubles. They can be taken for weddings, medical emergencies and payment of college fees, etc. Payday loans charge very high interest rates. Still, they are preferred by many working class people because of their quick and convenient terms.

Apart from payday lenders, a lot of banks and non-banking finance companies offer personal loans. And many lenders, such as IIFL Finance, provide personal loans quickly and through a fully digital, hassle-free process.

IIFL Finance offers necessary funds to meet all financial emergencies without you having to compromise on your wish list. IIFL Finance offers personal loans with attractive interest rates and flexible repayment schedules.