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Review of pay-day loan providers in India

Review of pay-day loan providers in India

  • By Saral Credit
  • July 22, 2022

If you are looking for an unsecured loan, a personal loan is the first option that most people prefer. However, not many of you are familiar with payday loans.

Yes, payday loans are also unsecured loan options that give you monetary support to handle short-term financial crises. This short-term loan is highly effective for professionals who have exhausted their salary and still have expenses to make.

If you have interest in taking a payday loan, this article will introduce you to the top payday loan providers in India alongside their detailed review. It will help you select one based on their review and your final decision.

Before moving ahead, you must know what features a payday loan serves. Here is the list of features offered by payday loans.

  • Withdraw Small Amount: Under the payday loan, the borrower can withdraw a small amount as a loan that needs repayment in a short time frame.
  • Repayment on Next Salary: The borrower has to repay the loan on the next date of receiving salary or income from any other source.
  • 2-4 Week Repayment Tenure: The repayment tenure of the payday loan usually varies between 2-4 weeks. It means your loan must be 100% repaid within the given tenure.
  • Quick Loan Processing: Payday loans usually have a quick processing time, saving you from emergency finances requirements.
  • No Credit Checks: Most lenders don't run hard credit checks for payday loan approval.
  • High-Interest Rate: Payday loans have high-interest rates as they are unsecured and don't include any credit checks.
  • No Guarantor Required: You don't require any guarantor to get a payday loan.
  • Borrower Verification is Important: Before approving a payday loan to the borrower, the lender ensures that the borrower has the potential to repay it on time.

Let's move ahead and discuss the top payday loan providers in India.

EarlySalary: EarlySalary is a popular payday loan platform that has a complete digital platform to disburse the payday loan whenever needed. With a three-step process, you can get your payday loan disbursed in your bank account. Simply download the app, apply for the loan and get it disbursed in your account. However, before applying, you must know the below-given details about EarlySalary.

  • Min Salary: 25,000
  • Min Loan: 8,000
  • Max Loan: 5,00,000
  • Min Tenure (in Months): 3
  • Max Tenure (in Months): 24
  • Min Rate Of Interest: 18
  • Max Rate Of Interest: 60
  • Processing Fee: 3%

Loantap: Loantap is a customized personal loan platform that gives you financial aid in emergencies. The biggest trait of loantap is its high loan amount. It can provide up to Rs. 10,00,000 loan amount, which isn't available with any other payday loan provider. Below are the details you must know before applying for a payday loan.

  • Min Salary: 30,000
  • Min Loan: 25,000
  • Max Loan: 10,00,000
  • Min Tenure (in Months): 6
  • Max Tenure (in Months): 60
  • Min Rate Of Interest: 18
  • Max Rate Of Interest: 30
  • Processing Fee: 2%

Salary Dost: Salary Dost has two lending partners that ensure quick and assured payday loans for your emergency needs. The payday loan provider exists in many cities and has the vision to expand it further across the country. You must consider the below-given points before applying for a payday loan from Salary Dost.

  • Min Salary: 12,000
  • Min Loan: 10,000
  • Max Loan: 1,50,000
  • Min Tenure (in Months): 3
  • Max Tenure (in Months): 36
  • Min Rate Of Interest: 18
  • Max Rate Of Interest: 36
  • Processing Fee: 750+ GST

Quick Credit: Quick credit is a popular payday loan application on the Google Play store. It has a simple-to-use interface that makes it a straightforward option to get a payday loan. You don't require any bank credit card to apply for the payday loan.

Among all alternatives, Quick Credit has a high loan approval rate. Its 24x7 availability makes it a good option in an emergency. Below are the basic details about Quick Credit.

  • Min Loan: 2,000
  • Max Loan: 3,00,000
  • Min Tenure (in Months): 3
  • Max Tenure (in Months): 48
  • Min Rate Of Interest (APR): 3.5
  • Max Rate Of Interest (APR): 12
  • Processing Fee: 2.5% to 5% (GST 18% applies)

Flex Salary: It provides a personal line of credit for salaried people in India. With express disbursal, the Flex Salary outranks other payday loan providers in India. It is the best options if you have a low credit score, are rejected for bank loans, have no collateral, or need emergency cash; Flex Salary is the answer.

Here are the details about Flex Salary that you must know before applying.

  • Min Salary: 8,000
  • Min Loan: 10,000
  • Max Loan: 2,00,000
  • Min Tenure (in Months): 10
  • Max Tenure (in Months): 36
  • Min Rate Of Interest: 18
  • Max Rate Of Interest: 36
  • Processing Fee: 750

Payme India: Payme India has, till now, disbursed more than 1000 Cr loans across the country. It gives you simple steps to get instant cash and handle your emergencies. At Payme India, you can also check your credit score and choose any other credit facility accordingly. Below are the essential points you must know before applying for a payday loan.

  • Min Salary: 15,000
  • Min Loan: 2,000
  • Max Loan: 2,00,000
  • Min Tenure (in Months): 3
  • Max Tenure (in Months): 24
  • Min Rate Of Interest: 18
  • Max Rate Of Interest: 36
  • Processing Fee: 5%

Now you have sound knowledge about the top payday loan providers in India. Before you proceed, you must know the common eligibility criteria for payday loans.

If you plan to apply for a payday loan, you must fulfill the below-listed criteria.

  • You must be a minimum of 18 years of age.
  • You should be a citizen of India.
  • You must have a regular source of income with full-time employment.
  • You must have a current active account.
  • You must have all the required documents to apply for this loan.
  • You must have an active phone number.

Documents required to apply for a payday loan include:

  • Proof of identity such as PAN card, Aadhaar Card, Driving License, Voter ID, Passport, etc.
  • Proof of address such as Aadhaar card, Passport, Voter ID, Driving License, Ration card, Utility bills, etc.
  • Age proof
  • Proof of income
  • Letter from the employer organization
  • Passport-size photographs

Steps to Apply for Payday Loan

Step 1: Reach the nearest branch and fill out the form for a Payday loan. You can also get it from the online portal.

Step 2: Submit your form along with the required documents (list mentioned above).

Step 3: Wait for the lender to approve your loan.

Step 4: If you qualify, submit the documents, including your income proof, age proof, address proof, etc.

Step 5: Once everything is done from the lender's end, your loan amount is credited to the account.

You have now grabbed the nitty-gritty of a payday loan. It's time to know the advantages and disadvantages of getting a payday loan.

Advantages of Payday Loan

Simple & Hassle-Free Process: The entire process, from applying for a payday loan to its dispersal, is simple and quick.

Quick Processing: The entire processing of payday loan verification is quick. It hardly takes 24 hours to get your payday loan approved. One reason behind quick approval is no collateral and credit checks.

Instant Loan for Emergencies: When you have no monetary support to handle emergencies, a payday loan gives you instant cash to settle your pending dues, bills, or other emergencies.

Zero Credit Checks: You are eligible to get a payday loan even if you have a bad credit history. In short, you can get your desired amount hassle-free. Payday loan verification doesn't consider credit checks.

No Collateral Required: You can apply for a payday loan if you don't have any collateral to pledge. Payday loan includes no credit check, no guarantor, and no collateral requirement.

Short Repayment Time: Your loan amount is short, which makes you debt free in a shorter time frame.

Multiple Loan Accounts: Payday loans are available from more than one lender. You can use payday loans from different lenders to meet your financial needs.

Disadvantages of Payday Loans:

High-Interest Rate: You are charged a high-interest rate as the payday loan doesn't include any collateral or guarantor. Moreover, your credit checks are skipped, which is also a reason behind high-interest rates.

Require Regular Income: Payday loans are only available to individuals with a static income source. That's why salaried people can easily apply for a payday loan and get it approved the same day.

Increase Your Debt: If you use a payday loan to clear existing debts, it will add to your overdue amount and increase your financial burden.

High Interest over Principal: In the short run, the payday loan will conclude into high interest compared to its principal. However, the same isn't true with traditional credit facilities.

Any individual who applies for a payday loan might overestimate the repayment and end up with high debt, putting a financial burden to your mind.

That said, you can choose from the above-mentioned payday loan lenders in India.

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