Ever heard about the concept of Payday Loans in the Indian Market? Well, how can we, we have 1000 other banks going mad at us offering us loans and telling us about various schemes. Extremely popular in the markets of UK, Canada, Australia and UK, payday loans is all set to enter the Indian markets with the advent of new synergies and collaborations happening here with the Indian Participants.
But, before that let us study what a Payday Loan looks like, and what are the underlying benefits of this?
A payday is a small, short-term unsecured loan, “Regardless of whether repayment of loans is linked to a borrower’s payday. The loans are also sometimes referred to as “cash advances,” though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday loans rely on the consumer having previous payroll and employment records.
The basic loan process involves a lender providing a short-term unsecured loan to be repaid at the borrower’s next payday. Typically, some verification of employment or income is involved, although according to one source, some payday lenders do not verify income or run credit checks. Individual companies and franchises have their own underwriting criteria.
In the more recent innovation of online payday loans, consumers complete the loan application online (or in some instances via fax, especially where documentation is required). The funds are then transferred by direct deposit to the borrower’s account, and the loan repayment and/or the finance charge is electronically withdrawn on the borrower’s next payday.
The entry of payday loans in Indian Market is still a fresh ground. But the Indian scenario is such that it has lower income from jobs, so payday at lower rate of intersets due to less job security can be a real time benefit to all the parties. Capitalizing this factor into account, CashSuvidha has entered a perfect tieup with Rupeelend to make the market of payday even much stronger in India. The partnership aims to further build the payday loans market in India.