A payday loan is a small, temporary loan and is given without any collateral, so it is unsecured. These loans are taken by people to tide over a small cash crunch during a short term and when they are sure about their earnings and repaying the loan soon. This is similar to the line of credit against a credit card.
One thing is common and that is there is nocollateral against which this loan is given. But the lender checks previous employment records and salary slips or certificates, to make sure that the borrower will be able to pay back the amount soon.
There was a time when anybody who wanted a loan had to go toa bank and take a loan. Then the trend was to go to a lending store and get a loan based upon thefinancial records. The borrower had to produce a post-dated check when the loan would be repaid orhe would ensure that he went back to the lender to repay the entire amountand take the check back. The other option was the lender would take the check to the back and encash if the borrower was unable to come.
But now the entire scenario has changed. With the entire financial world revolving around the internet,the loans have also gone the digital way. Now people apply for a loan on the internet, complete all the formalities and the amount is credited to his account. There is no personal interaction between the lender and borrower. The details of the accounts are available to the lender and the repayment can be completed by debiting the account as when the amount is due.
The system works to the advantage of both the borrower and lender. The borrowermay be desperate to get some money to handle anemergency, like a sudden sickness in the familyor repairs needed in car or house. Many young guys like to go for a vacation now or buy a gadget now with a short term loan and pay it back later. Sometimes people need to take a small amount of loan to pay back a credit card amount that is due immediately. Similarly, some people take this short term loan to improve their credit score. These short term payday loans do not affect the credit score so people prefer this route.
Though the term payday loan means the amount hasto be paid back at the time of next payday. But sometimes the duration of repayment extends to three or more months. The size of this loan is not very huge owing to the fact that there is no collateral for this kind of borrowing.You can apply from anywhere in the country and the loan amount may be deposited into your account on the same day or in a couple of days.
Online loans are very beneficial for people due to their instant availability. These are very convenient as the loan amount and duration are flexible, from a few days to a few weeks. You cansearch online for the best possible rates. This is a great boon for borrowers as they can borrow from anyone that they like. Otherwise in the past people had to go to the nearest lender in their vicinity and were forcedto take the loan on his terms.
The lenders could chargeany amount asinterest. In fact,law has become stringent now as the lenders became greedy and started charging very high interest rates, more than the principal amount. Now with online lenders, the process and rates of interest are very transparent. A borrower can go to any website and find out everything about the lender. There are no hidden charges anymoreand most of the lenders do not charge any application or processing fees. All they charge is an interest and that too is regulated by the government.
These loans can be used for any purpose, and there is no restriction on it. Vehicle or home repair, special occasions, weddings, unexpected bills due to an emergency or paying off credit card debt are the most common reasons for taking a payday loan
We all fear from retirement as we will be no longer entitled to receive our monthly income post retirement. Nowadays, the pension schemes are also not available to many employees. In order to meet the financial needs post-retirement, one has to rely on some source of investment that generates a regular income. Few people still have their loans/debt pending post their retirement. In addition to meeting their day to day needs, they need to look for some reliable source to support their loan installment or debt payment.
Besides the above expenditures, there is always a room for emergencies; mainly medical emergencies post your retirement due to the age. Needless to mention, the treatment cost even for a small, chronic medical issue runs in five to six digits. It is essential to plan your funding for meeting the medical expenses.
Here are some of the best ways to procure financial assistance during your retirement in order to meet your needs without much hassle.
1) Saving Schemes: Bank is one of the trustable sectors in the financial market. Their schemes are promising and reliable. Of course! It is preferable to trust nationalized/government banks as they are safe and secure. There are retirement savings schemes exclusively for senior citizens/retired person. These schemes allow for the withdrawal of money anytime for meeting their financial needs. The withdrawal cost is also nominal. Do intense research on the schemes and the interest rates offered by the bank and try to deposit at least a minimal amount in any of these schemes as it may be beneficial to you in future when you are in need of financial assistance.
2) Borrowing from a known source: When you are in a hurry for cash to meet the emergency needs, first, seek support from your family members, friends, people known to you personally, neighbors etc. They may be people who are interested in funding you immediately as they understand the emergency. Besides that, borrowing money from people known to you involves zero paperwork or approvals, unlike a bank loan. Hence, it is advisable to seek help for funding from your known source before approaching the banks for a loan.
3) Job Opportunities: It is understandable that one goes through all pain, efforts, travel, stress during employment and retirement from work is necessary at one point in time precisely to avoid medical complications in the later age. However, some companies offer job opportunities to the retired person considering their need to meet the financial expenses. Search for job opportunities and apply to those relevant to yourself. Additionally, there are plenty of online job opportunities where you can work from your home without any need to travel to the office location. This might give you a regular fixed income to meet your needs.
4) Explore your skill: You may be expertise in some field or area and through work experience; you might have gained a deep knowledge of the same. Try to utilize the skills that you have acquired. You can either do coaching or work as a guest lecturer. If you have a passion for a particular product or a field, you can think of starting a business. However, establish a business only when you are expertise in that area. If you are not confident to do so, you can collaborate with partners and give your inputs for running the business. This might fetch you a good income. There are various means to explore your skills. Age is just a number! Explore your skill/passion and make a profit out of it.
5) Investments: You would have tried to invest at least a penny in some investment platform before your retirement. If so, you may use your investment return to meet your needs. In case, due to circumstances, if you were unable to invest before retirement, worry not! You can still invest in a low-risk platform that generates you a decent return. Portfolio managers shall assist you in choosing the right investment based on your age, medical records, income etc. A small amount of deposit could yield you a good return. In fact, in future, if you are in need of money, you can withdraw your investment and utilize the same for meeting the emergency.
6) Bank Loan: Considering the "no monthly income factor" post-retirement, some banks hesitate to provide a loan to the retired individuals. While some still offer a loan to the retired individuals after verifying their credit report. A credit report assesses one's creditworthiness or credit capacity. Generally, what affects your credit report is the default or late payment of credit card or default in loan installment, over-borrowing etc. Based on your credit report, the bank may offer a secured/unsecured loan. Hence, it is pivotal to settle your bills or debts in a timely manner as they may impact your future while availing a loan. Further, the bank may also offer you a loan based on your long-standing relationship with them. So, availing a loan from the bank is one such option for financial assistance even after your retirement to meet any emergencies.Apart from the above, there are many options for financial assistance during your retirement. The government are also supportive and initiate various schemes to provide financial aids to the retired/senior group. There are Non Profit Organizations that focus on providing financial support to retired/low-income people. One can seek the help of these organizations for financial assistance.