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Same day payday loans V/S Bank loans- WHAT IS BETTER OR WORSE?

It has been seen that people nowadays prefer availing loans in the way of small payday loans rather than the lengthy bank loans. The same day payday loans are gaining momentum in almost every part of the world. People are increasing following the trend of availing the loans in short period of time with these payday loans. They deal with small amount of money and the transaction is done within a few minutes of verification. There are no kinds of lengthy and troublesome formalities that take place while the verification of small payday loans are being granted or issued.

Each of the loan providers has their own set of rules that are to be followed by all those who are seeking loans. There is no case of missing or omitting any rule prescribed for the loan granting verification process. The payday loans are also being provided as the short term loans online. In this process, the money is transferred from one account to another, without even the meeting between the loan provider and client in person. The short term loans online are a highly convenient and time saving way to procure loans.

There are various differences between the same day cash loans and the bank loans. Some of them are mentioned below:

  1. Paper work or no paper work-  The bank loans are hugely linked with great amount of formalities to be done. All this involves a great amount of paper work also. The people are granted loan only after the formalities and dealings are done smoothly. Whereas on the other hand, if we talk about the same day loans no fees then it does not require any kind of paper work being done. The loan provider in this case only checks the background of the person superficially and the loan is easily granted.

  2. Check or cross check- There is no kind of cross check done on the behalf of loan provider or the person who is providing the loan in case of same day loans. Whereas the bank officials thoroughly check and in some cases, even cross check the background of the individual who is being granted the loan.

  3. The amount of money- The large operating bank grant large amount of money in loans. They do not deal with small amount of money or any kind of minute transactions. Whereas on the other hand, the same day payday loans deals with small amounts of money or transactions are done on a small scale.

  4. The time duration of granting the loan- The bank loans take a lot of time due to various formalities prior to the granting of the loan. It is certainly a lengthy and time consuming process to procure loans through the traditional way of bank loans. Whereas on the other hand, the same day cash loans are issued on the very same day of requirement, as its name suggest. Therefore, it is an instant way to procure short term loans even in a short period of time.

  5. The rate of interest- The bank that provides loans to its clients fixes a rate of interest for all the clients. It is the same rate for all the clients who seek loans. People have to pay interest according to the fixed rate of interest by the bank while repaying the loan. On the other hand, there is no fixed rate of interest in the case of small payday loans.

  6. The matter of the due date of repaying the loan- The bank provides a due date to all the clients. It is prescribed that all the clients must pay back their loans prior to the due date. The due date given by the bank is nowhere near or close. It depends on the amount of money and can vary from months to years. On the other hand, the same day payday loans become due as soon as the payday or the salary day of the client comes. The client is required to repay the amount to the loan provider as soon as his or her salary comes.

Thus, these are some of the difference between same day loans and the traditional bank loans.

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