All types of short term loans will have distinct eligibility criteria. Payday loans have reasonable qualifying factors. All lenders don’t have the same eligibility criteria. Payday Pug has laid out some minimal requisites that most borrowers would satiate anyway. The basic eligibility criteria for borrowers to apply for payday loans through Payday Pug are that you must be a resident in the United Kingdom, you should be at least eighteen years old, you should have a bank account, you must have a paying job or some source of income and you should have an address. All such details should be valid as some lenders of short term loans may authenticate them.
Basic Eligibility could be enough for Approval
There are various kinds of short term loans and many require credit checks and some involve collateral. Payday loans don’t require collateral or any kind of security. There is no credit check either. Most people find payday loans more appropriate because of these two reasons. Since there is no credit check and no assessment of collateral, the basic eligibility can be sufficient for the approval of payday loans. If you have provided the information required to apply for payday loans through Payday Pug, you may not have to provide any other details and you could be approved. However, basic eligibility will never be treated in isolation. Your application will have a loan amount. You may prefer or ask for a certain repayment term. Lenders will have their own propositions for you. All these will determine your eventual eligibility for approval.
Assess your Loan Eligibility
Loan eligibility is one of the most important aspects of payday loans. Many borrowers do not realize how important this can be as the entire application can be turned down simply on the basis of the loan amount sought. The basic eligibility will only determine if you can apply for payday loans and if the lenders you reach out to through Payday Pug will have an offer for you. Once the basic criteria are satiated, lenders will go into the merits of the application. If you apply for a loan amount that is higher than your capacity to repay, then a lender will turn down your application. Some lenders of short term loans may offer you a proposition wherein the loan amount will be less than what you have asked for but they are not obligated to do so. Lenders may not initiate any communication and you would not get to know why you did not receive any offers from some.
Loan eligibility is determined by three factors. The most important factor is your income. The second most important factor is your monthly expenses or the financial commitments you already have. Lenders don’t expect you to forget about your existing financial liabilities and repay the loan, which at times may mean that you have to adopt some seriously austere measures. The third factor is the interest and the repayment term, both of which will determine how much money you have to repay every month.
The capacity to repay is at the crux of loan eligibility. It is not as much about how much a lender can lend or will lend, how much the borrower needs or seeks, whether or not a borrower has a desirable profile and other such realities. The whole issue of loan eligibility is about whether or not a borrower will have the spare cash every month to conveniently repay the loan along with the accrued interest. Those who ask for a loan amount that is deemed a tad higher than what they can repay should opt for a longer repayment term. This would reduce the monthly installment and repayment would become more convenient.
You should assess your loan eligibility at the outset, before you apply for payday loans through Payday Pug. You don’t want to ask for an amount that would be deemed too high for your income and hence repaying potential. Lenders may or may not get into a discussion with you. Some lenders may offer you a reduced loan amount. Others may not respond to your application. Assessing loan eligibility will help you apply for an amount you can actually get approved for and this will get you more offers. Loan eligibility is also a kind of self assessment. It helps you to determine how much you should borrow.