Just when a salaried person has got his paycheque, he may require money urgently as his income is not sufficient to cope with the situation. Payday loans are especially designed for the purpose of approving a loan amount in such a situation. So the attractive feature and usefulness of payday loans is that they are in the hands of the borrower instantly. Usually payday loans are approved within hours and the amount is in the borrower’s account in 24 hours of applying.

For availing payday loans, all a borrower has to do is fill a application form provided online by most of the lender and give details of loan amount, income, purpose and persona information. The lender will approve payday loan on instantly verifying your employment status and salary. Even if you are having bad credit, payday loans are approved without credit check just on the basis of monthly income and employment status. Usually it is on the basis of a post dated check of the borrowed amount from the borrower that payday loans are approved.

Since payday loans are unsecured loans provided without collateral, lenders charge a higher interest rate for cutting risks. Another reason behind higher interest rate is that payday loans are short term loans. The borrower pays back the loan when he gets next paycheque. The borrower can extend payday loans term if interest is paid on time. Bad credit is not at all an obstacle in availing payday loans as usually next paycheque is considered enough for safe return of the loan.