Short term loans generally have much higher interest rates than bigger loans like mortgages because they will be repayed over a much shorter period, and usually in a single lump sum. For payday loans, the length of time is usually one month, where a mortgage might be paid off over 20 years, so a high interest rate won’t cost you as much. However, before taking out a payday loan or any kind of finance, it’s worth knowing a little about the interest rates that apply.

At Payday Bank we set out our rates simply, so you know exactly what you’ll owe at the end of the month without having to get out a pencil and a calculator. However, you might want to compare rates between companies, and not everyone is that helpful (if a loan looks deliberately complicated, stay away from it, because not all payday loan companies are ethical), so let’s look at our interest rates.

Interest is usually calculated yearly, which means it can be difficult to figure out on a one month payday loan. Let’s take the simple example of borrowing £100 from Payday Bank and paying it back a month later. The interest you would pay is £25, so the total that you’ll owe at the end of the month is £125.

The yearly interest rate that figure corresponds to is 1355.19%. That may seem like a lot, but remember that interest won’t be compounded over a year, because this is a short term payday loan. You can use that figure to compare our rates with other payday loan providers, though.

Are you above 18 years of age with a steady income and living in the United Kingdom? If so, you are eligible for an online payday loan. The moment you are a resident of the United Kingdom with a bank account for over 90 days and a steady job, you have access to a quick and easy money loan from genuine a British lending company. The UK registered company, Milarco LTD, easily and conveniently provides you with the cash amount of your choice. Typical amount of cash given in the Payday loan method is up to 750 pounds. In contrast to other lenders not working via the Internet, who might not want to worry themselves with your small short term money needs, payday loan is accessible from any computer anywhere. You simply log on, visit a website:  www.paydaybank.co.uk and get into the online short application. So as long as you are above 18 years of age and answer to the simple terms mentioned above, you can easily apply and get the urgent cash you need by the next working business day.
The payday loan industry offered is genuine. The lending company is real and can support you online with any questions you may have about the loan. The payday loan can serve you as a better alternative than savings for a rainy day. The online loan is the money you can reach just as easily as any other saving. If you do not have any money savings you wish to use, paying your bills on time is a good way to avoid further debt in the future. By taking on a payday loan you avoid debt instantly, and repay the payday loan on your due date or your next payday.

Payday loans are primarily a way to boost your current lack of cash flow to deal with emergency financial situations where you do not have any other income options until your next pay day. They are a pretty good option for a short-term financial boost, but there are some things to consider.

If you are thinking that you would enjoy the convenience and confidentiality that applying for a loan online provides, then you also need to be aware that online lenders will not be able to provide you with the money you need before the following business day at the earliest. This is because they cannot just give you a check or cash like a traditional high street lender can, so they will need to deposit your loan amount into your bank account electronically once you have been approved.

This is still a very fast option, but may not meet the same day needs that you might be looking for. As with any loan situation, you need to remember to be responsibly aware. When you are looking into getting a payday loan, remind yourself what you are getting into and not to make a habit out if it.

It should be stressed that payday loans are not for everyone and that they are designed to be used in the short-term only. However, with a little bit of research and some careful thought, going online for your payday loan is a great option that should be well worth your consideration.