Warning: Late repayment can cause you serious money problems. For help go to moneyadviceservice.org.uk
Warning: Late repayment can cause serious money problems, for help or advice please go to moneyadviceservice.org.uk
Rates from 278% APR to max 1576% APR. Minimum Loan Length is 3 months. Max Loan Length is 6 months. Representative 305.9% APR. Representative example: £400 borrowed for 90 days. Total amount repayable is £559.68 in 3 monthly instalments of £186.56. Interest charged is £159.68, interest rate 161.9% (variable). interest rate 161.9% (APR variable). We are a credit broker not a Lender.
Payday loans are fast, small-sized cash advances lent against borrower’s monthly earning capacity. These loans are to be paid back over shorter terms, in comparison with traditional bank loans. The size and repayment schedule of payday loans is decided by the lender, in agreement with the borrower.
Here are some common scenarios that require people to go for a payday loan:
Emergency medical situations.
Unforeseen cash shortage due to delayed paycheques/flawed money management.
One-off hikes in monthly expenses (travel, food, special events, down-payment for appliances/gadgets,car repair/purchase, new utility bills etc.).
There are a number of other situations in which a bit of cash goes a long way, and that is when a quick fix like a payday loan can come in quite handy. However, if you are planning to get a payday loan, you must note that payday loans are not viable cash sources over a long term, or repeated borrowing. Late repayment can cause you serious money problems. For help, go to www.moneyadviceservice.org.uk.
Here are a few major features of payday loans:
Payday loans are quite easy to apply for and receive.
They are instant, in almost all cases.
They are invariably small sized so that you can pay them back more easily.
They are short term loans, meaning that you have to pay them on or before your next payday.
They are flexible.
As convenient as they are, payday loans may not be the best option for every applicant. They work the best if you have a guaranteed source of monthly income. Also, in comparison with traditional bank loans/credits, payday loan interest rates are higher. It’s always a wise idea to take these factors into consideration before you apply for a payday loan.
When you apply for and receive a payday loan, you are dealing directly with the lender. We, at Viva Loans, try to put in one place a list of various direct lenders who would be interested in lending to you. It must be noted that we only help connect lenders with borrowers.
While you can get a payday loan in a more traditional way through various High Street loan shops in your town/city, the easiest and often the quickest way to do so is by applying through a responsible payday loan broker like Viva Loans.
To be eligible to get a payday loan, you need to satisfy the following criteria:
You must be a legal UK resident.
You must be 18 years of age, or older.
You must have a valid UK bank account (savings account/checking account).
Payday loans are essentially meant to ease up the whole paperwork, and that’s why, very few documents are usually needed to successfully apply for a payday loan. In all probability, you already have electronic or scanned copies of these documents in your possession.
A valid proof of identity.
A valid proof of address.
Your bank account details.
Your average monthly expense estimate (as detailed on the application form).
The following table can be helpful to decide which documents are accepted as valid proofs of identity and address. Please note that this list is not exhaustive.
|Document||Is it valid as proof of idenitity?||Is it valid as proof of address?|
|Current UK driving license (old and new)||Yes||Yes|
|Ful form UK birth certificate||Yes||No|
|Non-expired UK passport||Yes||Yes|
|Utility bills (issued within last 3 months)||No||Yes|
|Bank passbook/statement, Credit Union passbook||No||Yes|
|Land registation certificate||No||Yes|
|Rent card / tenancy deed / tennacy agreement for the current financial year||No||Yes|
|National ID card||Yes||No|
|Valid passport of a UN recognised country||Yes||No|
|LAC tax receipt||No||Yes|
|Electorol register entry||Yes||Yes|
By providing the detailed estimates of your average monthly expenses, you make it easier for lenders to review your application faster.
No, it is not.
Most lenders are willing to approve payday loan applications from all legal UK residents (not necessarily citizens), so long as all other conditions are met.
Provided that all other conditions are satisfactorily met, all legal immigrants to the UK (preferably those who enjoy an education or a work visa) are just as eligible to get a payday loan as UK citizens are.
It’s difficult – almost next to impossible – for a visitor to the UK on a limited period tourist visa to receive a payday loan.
No, it’s not absolutely necessary to possess a debit card attached to your savings/checking UK bank account. However, it’s much more preferable to have it, as it allows for easier loan repayments – a factor that may weigh-in your favour when lenders review your application.
No, you cannot.
To be eligible to receive a payday loan in the UK, you must have a valid UK bank account with you (as an applicant for the loan) having full transaction authority over the said account.
Yes. As long as you possess the full transaction authority over the account, you can apply for a payday loan using the said joint account. However, to avoid complications/confusion, it’s better advised to use your own bank account for a payday loan application.
Being employed is usually enough to get a payday loan.
A verifiable source of income is the one which, with enough documentation, can prove that you have a definite sum of money coming in every month, regularly. While most payday lenders only allow for full time/part time jobs to be counted as a verifiable source of income, there are specialist lenders who find governmental social benefits, retirement pensions or even income on domestic investments good enough to grant a payday loan against.
In short, you have a strong chance of having your payday loan approved if any of the followings:
You are employed full time/ self employed, part time.
You are on regular benefits.
You have a regular stream of income through investments/grants.
It’s quite easy. Any one of the following documents are usually accepted by payday lenders as a proof that you have a verifiable source of income:
A valid bank account statement (preferably for the past 3 months) for your basic bank account (savings)/monthly pay account (checking).
A statement of pay from a VAT registered employer.
In case of other income streams than salary, concerned bank deposit statements (for pensions, benefits,grants etc.)
Payday loans, as explained earlier, are small-sized loans. As per the latest regulations, the least you can borrow as a payday loan from a responsible lender is £100. The amount of money you can borrow as a payday loan can typically go up to £2,000, depending upon your credit score and the policies adopted by various lenders. At Viva Loans, we help you secure easy payday loans online, from £100 to £2,000, in increments of £10.
Yes, it certainly is! Unlike conventional bank loans, payday loans are quickly accessible, once you fulfil the necessary criteria mentioned above.
There are two parts that are involved here – review of your application and loan disbursement (deposit of money to your bank account).
When you apply for a payday loan through us, we make sure that suitable lenders receive your application readily. Completed applications are processed within minutes, and in most cases, you will get to know about the status (approved/rejected) of your application within half an hour from submitting.
Once your application is approved by a lender, it won’t be long before you can actually access the money. For applications approved before 14:30 hrs on a working day, money is electronically transferred to the applicant’s bank account within 10 minutes of approval. In all other cases, money is transferred on the very next working day, before 11:00 hrs.
If your bank account is ‘Faster Payments’ enabled, you can receive the money within 10 minutes of approval, on all days, at all times.
Please note that bank holidays may affect these timings.
Almost every lender that we help you get in touch with here at Viva Loans offers round the clock service. So, even if you apply for a payday loan during a weekend or on other bank holidays, you can be sure that your application will be reviewed readily, with enough care. Once accepted, you can get the money in your account instantly – even during bank holidays – if your bank supports Faster Payments facility, as noted earlier.
Yes, they are.
A typical bank loan would involve lengthy paperwork and due procedures, while a payday loan can be approved and paid instantly, as noted above. Also, bank loans are usually without an upper cap, as the banks have large resources to grant bigger loans. Payday lenders lack such resources, and hence, can only lend small amounts of cash. Various financial regulations also prohibit payday lenders from lending large sums of cash.
Just like the amount of money you can borrow, the repayment tenures are also governed by relevant financial authorities, including the Financial Conduct Authority. The loans made accessible to you via Viva Loans are usually termed over 3 to 12 months. This period can be customised in agreement with the lender.
There are two ways in which you can pay your payday loan back.
This is arguably the simplest and fastest way to pay a payday loan back. If you sign up for a payday loan and choose to provide debit card information of your bank account, the lender can automatically withdraw the agreed repayment amount directly from your bank account on your designated payday. This is called ‘Continuous Payment Authority’ (CPA). You can choose to terminate CPA arrangement by simply notifying your bank.
You can repay your payday loan on the scheduled repayment date by depositing an electronic cheque or a wire transfer to the lender’s account. Please make sure that such cheques can take up to two working days to be cleared.
Payday loans are usually charged an interest rate that is best represented annually. This is called an Annual Percentage Rate, or APR.
For example, at a representative APR of 305.9%, if you borrow £100 today, to be paid over a course of next 90 days, you will be required to pay a total sum of £139.92*. Various lenders offer a variety of APRs for the payday loans availed from them. At Viva Loans, we present to you a wide range of offers from different lenders so that you can choose the one that is the cheapest and most convenient for you. For all other questions regarding payday loan interest rates, please visit this page.
*Lender specific extra fees may apply.
If you pay back the payday loan you have taken on schedule, there are usually no extra fees other than the interest associated with your payday loan. There can be, however, incidental overheads as explained below.
Some lenders may charge a small convenience fee/ processing fee/ establishment fee over and top of the loan amount and interest. This is typically a one-off fee that might be added to the total interest.
Defaults, loan restructuring, extension or roll-over of a payday loan attracts some extra fees. While interest on the loan amount can mount up fast in such cases, a lender is allowed to charge a maximum of £15 in default fees.
The following table summarizes all the fees associated with a payday loan with a representative example.
|When you repay on schedule||When you default the loan|
|Principal (your original loan amount)||£100||£100|
|Loan processing fee (decided by the ender, capped at £24 per £100 borrowed)||£24||£24|
|Default Fees(no more than £15)||NA||£15|
Yes, you can.
To settle your payday loan before the due date, you can directly contact the lender. Most lenders will charge you a very small rescheduling fee for the same. In most cases, this fee is more than offset for by the amount of interest you will be saving.
In case you fail to repay your payday loan, make sure that you intimate the lender as soon as you can. This will help your lender stop from making withdrawal attempts under CPA. If the lender is unable to do so, you can terminate any standing CPA arrangement by directly calling/writing to your bank.
With clear communication, it will be easier for you to find an amicable way out, in agreement with the lender.
No, it is not.
When you default a payday loan, you agree to pay the due amount back on or before the next payday(s) in one or more instalments. Loans settled in more than one monthly instalments are usually treated as ‘instalment loans’, and they often require you to pay a much larger interest value.
Payday lenders usually run a credit check while assessing duly submitted loan applications. These checks are run in accordance with prevailing laws, and only through approved credit referencing agencies.
While your credit report is a good indicator of your financial habits, it usually doesn’t play a decisive role in a payday loan application being rejected. If you have a regular income that lenders are satisfied with, your payday loan application will still be accepted, regardless of the health of your credit report.
A payday loan does indeed impact your credit report.
However, this impact need not always be a negative one. In fact, a duly repaid payday loan will surely help your future borrowing prospects. Also, applicants should note that when you apply for a payday loan, you authorize payday lenders to access your credit report, and this activity is visible to any prospective lender in future.