Introduction:

Nowadays, everyone is looking for an automobile. In this race of luxury, people usually opt for a loan because having such a surplus amount of cash for buying a vehicle is not an easy task. Therefore, the individual usually chooses the loans associated with automobiles. Whereas, in the case of traditional loans, the individual needs to share their credit reports to issue the loan. Due to these conditions and the time consumed in document verification, people usually choose more convenient payday loans. However, an individual needs to Qualify For A Payday Loan to issue it. Overall, payday loans are way better than traditional loans. 

Importance of payday loans:

A payday loan is considered a subcategory of the unsecured loan that can be opted for by any individual if they are looking for a short-term loan. These payday loans are available on an online base as well as on offline bases. Well, as per the name mentioned, the payday loan needs to be replayed by the individual by the next payday. However, this period should not extend to more than four weeks. Whereas, considering the fact of payday loans, the interest charged over the amount is quite high in comparison to the other traditional loans incurred by the banking institutions. Furthermore, a payday loan is even available for a person that has a bad credit history. 

Eligibility criteria for payday loans:

In order to issue a payday loan, the individual needs to meet several criteria as per the policies of the banking institutions. Some of the eligibility criteria for a payday loan are as follows:

1. The individual needs to be at least 18 years old to fall as an eligible person to issue the loan. 
2. The person needs to be a citizen of India
3. One of the most important aspects of the payday loan is the individual needs to have a regular source of income. 
4. There must be a current account under the name of the borrower.
5. The borrower needs to have several other documents verifying their identity, address, etc. 

Advantages of payday loans:

A payday loan is one of the widely adopted loan procedures due to the facilities provided by the institutions under a payday loan. Therefore, a list of advantages of the payday loan is given below:

1. The loan approval of payday is quite easy and quick in comparison to other traditional loans. 
2. The verification steps of the payday loan are quite fast and quick, which is done within 24 hours. 
3. However payday loans are associated with a high-interest rate, but, in the end, the overall amount paid as interest is quite less in comparison to the other traditional loans. 
4. A person with will low credit score can also opt for a payday loan. 

Conclusion:

When it comes to issuing a loan, an individual might choose the traditional loan, which requires a time-consuming document verification, or the payday loan, which is a short-term loan that is easy and quick to follow. Therefore, people prioritise payday loans because of the features provided, as well as one with a bad credit score can also easily apply for the loan. 

Joseph Norton