Swift Secrets Of Lending stream Uncovered
The different loans which are offered in the market
When it comes to short term loans there are a number of different resources which exist within the short term loans market. After years of evolution within this vast market place, this year we are finally reaching a place where the lenders who exist do so with responsible and affordable lending in mind. This means the modern day lender is making active efforts to support and follow the guidelines and regulations set out to them by the recently appointed governing body. As of a few years ago the regulator responsible for the short term loans market changed and as such the type of lenders, information Lending stream and loans which are offered began to follow. The regulator in question is the Financial Conduct Authority who were introduced as a means of bringing this market, which supports millions of consumers each and every year, into order. As such the Financial Conduct Authority (FSA) through research of existing lenders established a set of rules from which short term loans lenders must operate. By complying with these rules the market for short term loans is now more consumer friendly than has ever been the case before. Today we will be exploring this in more detail in order to understand the different loans which are now offered within this market.
The classic type of borrowing resource offered in this market is known as the payday loans uk. The payday loan still exists within the short term loans market but is no longer the most popular choice amongst consumers. The payday loan is a simple and straight forward lending tool which works on the understanding that the applicant is able to repay the loan amount borrowed as a single repayment. As the name of this product suggests a customer applying for a payday loan will repay the amount on their next employment pay date. This means repaying the loan borrowed as well as the interest agreed for the loan period. For customers who are subsequently unable to repay this amount, limited repayment alternatives are offered which do not have an impact on the customer’s credit rating.
The increasingly popular way of borrowing money within the short term loans market is the instalment loan. An adaption on the payday loan, instalment loans allow the customer the opportunity to repay the amount borrowed over a pre-agreed period of repayment. This means instead of making a sizable one-off repayment, if it is more affordable to do so the customer can choose to repay the loan over a number of monthly instalments. Depending on the period of repayment the loan will carry interest accordingly and in line with FCA guidelines. Clearly the longer the term of repayment is, the greater the total amount interest payable will amount to. Given the flexibility of instalment loans as an short term loan option, it is far easier for consumers to make a selection based on realistic needs and existing expenses and does not mean agreeing to a single repayment agreement which is far from realistic.