Direct lending has opened up gates for many individuals, including those having small or large fund requirements. The lenders belong to this marketplace have come into picture with more expectations and result-oriented approach. Unlike the conventional lending institutions, they do not shy away from providing loans on flexible terms and keep experimenting with their loan products.
There might be two reasons for this: first, they have to stand in the competition of the marketplace and second, they have to bow down ahead of the growing demand from the borrowers. Both the reasons are genuine and important to think over again the need of loan in terms of direct lending.
When we are discussing about the mounting significance of online lending, it becomes intrinsic for us to discuss about one or two loans as the examples. In this article, we will throw light on 12 month payday loans, which are indeed not the part of traditional lending but accepted by the modern age lenders.
What the loans are all about?
One of the most applied short term loans are payday loans. People apply them because they can get funds on an instant and repayments are also easy according to weekly or monthly basis, which means these cash advances are for very short period. For the sake of presenting more into this loan option to the borrowers, a few direct lenders have started a new concept like ’12 month payday loans’ that is very unlike traditional payday loans.
You can also call them as the instalment loans where the repayments stretch till one year and just like payday loans, you have to make instalment on your each salary day. These sorts of loans are considered the best to keep as the financial backup in order to avoiding any mishap.
Important Pointers that make Loans More Effective than Others
Such sort of loans can be identified as the sub-division of already existing payday loans. The main difference lies in the duration in which first one is for a year and later one can be processed within a few weeks or a month. However, if the lenders have brought this product, then there must be some genuine reasons why people want to apply. Here are some reasons:
- No problem in making repayments
One of the biggest benefits of these loans is the easy repayments. As a borrower, you can easily manage the monthly instalments for one year ahead from your monthly income. It will bring two further benefits: first, your credit profile will improve with timely repayments and second, it won’t affect your family budget and daily financial activities can be continued.
- Good option for bad credit scorers
In the UK, there are huge numbers of people with bad credit scores. The lack of financial credibility feels them very bad because they get maximum rejections than the approvals. The marketplace of direct lenders has been a nice alternative for them where they can fetch desired funds without any affect of their low credit profile. As mentioned above, the chances of enhancing the credit scores are also available for them, if they make proper repayments on the given day of each month.
- Obligations are flexible
Majority of the individuals prefer to opt for that loan company where they have minimum obligations to follow. You know comfort is what human nature’s most favourite aspiration. Jokes apart, direct lenders also realise this thing and thus, they have framed options like 12 month payday loans to their finance products. These short-term loans do not require any paperwork, as the process is online. Besides that, presenting the guarantor and placing the collateral is also not compulsory that truly reflect the flexible nature of the online lenders.
- Useful for Multiple financial purposes
Do you feel lack of funds to pay university’s fees? Are you feeling burden of too many debts? Or, does your home require a sudden improvement? Whichever purpose you may be eyeing for, these loans will bring necessary funding for your purpose. While approving the loan applications, lender does not ask for the purpose rather its main concern is how to get the repayments on-time from the borrowers.
Some ending notes…
These loans do have certain benefits for the borrowers and most crucially, they can get funds when they need at the most urgent basis. However, you should keep an eye on the interest rates. Many direct lenders charge high rates on these loans that will only put unnecessary burden on your finances. Instead, take some time to research and find out the reliable lender, which can provide loans on at least competitive interest rates. A proper research will help you. Apart from that, there is one more advice that you should not ask for such amount that may not be required in the current circumstances. Remember, you have to make the repayment later.