How Small Payday Loans Could be a Better Substitute to a Credit Card Payment?

A credit card is one of the most important articles, of the wallet. Especially for the folks of Delhi NCR where it is easy to obtain credit cards from both public and private sector banks. Once attributed towards the tool of rich and elite people, it has made his way in the pockets of middle and lower middle-class houses. Even sceptical people from the public sector who are not very susceptible to changing times are using the credit cards. But a new competitor has entered the market for credit card companies, which is the payday cash loan. The need of small amount of cash or loan is very normal for salary based individuals. For people who work hard daily to earn for their necessary needs, the payday loans come as a relief when they require the urgent need of funds.

While credit card provides essential services and completes our need of excess money requirement at an instant, there are some issues related to it. Firstly, banks both public and private sector has now become more vigilant while issuing credit facility to its customers. The credit cards are not issued easily nowadays. Customers have to fulfill the criteria of some minimum requirements and have to submit their salary structure upon which the banks decide whether to sanction or not.  Secondly, the amount on credit card is limited and the user has to pay high-interest rates on the borrowed amount.  Small payday loans are a much better alternative for instance cash. The best feature of payday cash loans is that it is easily available to anyone who applies for it without and hassle of excess paperwork and background check. The start-ups which usually disburse these loans asks only for Adhaar and Pan card details and these too can be uploaded online. The delivery of the loan is at your doorstep within two to three days of your application.

Deepti is an IT professional working in a renowned multinational company. This month when an urgent need of cash came forward in front of her, she was clueless about how to handle it. Only 14 days have passed since she had her salary and there is no such source of income to generate this much of amount at an instant. She cannot even refuse her family as she is the only earning member of the family and they have very high aspirations regarding her. Deepti is in a fix, what to do? She cannot use her credit card as it is needed in any other case and for future expenses. Applying for a loan is not possible as the amount is low and money is needed quickly. She applied for a payday loan on an online website. Completed the legal formalities online, uploaded her pan card details and the sum was delivered at her home within two days. She repaid the loan with her next month’s salary.

Thus, the lives of the working professionals are greatly affected by the payday loans, mostly in a positive manner. The reason for its popularity is that it charges very nominal interest rates in comparison to the credit card and delivers service well better than it. While the deduction method is similar in both the services, the payday loan does not have any hidden charges or processing fee to dupe the customer.