close btn

Service Update- (Covid-19)

In accordance with the respective state government’s directive, we’ve resumed operations in all the cities. However, a few services will remain affected while others will continue as usual. To read about the services or moratorium updates, Click here

Payday Loan in India
payday-loan-in-India

Payday Loan in India

Financial emergencies come without warning and can land anyone in a difficult situation, especially if it’s near the end of a month. Although there are multiple financial solutions available for specific requirements nowadays, most involve extensive paperwork and satisfactory credit credentials. This often leads to tedious verification procedure, making them not-so-ideal for instant fund requirements.

Such situations have led to the increasing popularity of instant, short-term borrowing options like a payday loan. Their easy availability might tempt you to pick these financial products without a second thought. Yet it is essential to know what these entail to judge if such loans are really advantageous.

All About Payday Loans

A payday loan is classified as a short-term, small funding option sanctioned to working-class people. It typically comes with an ultra-short repayment tenure and is meant to be repaid on the subsequent payday, from where their name is derived. Some prominent features that make these loans a popular funding option are as follows.

  • Fast Approval And Disbursal: Generally, these quick loans are promptly approved and disbursed, sometimes within the same day.
  • No Collateral: These financial products are unsecured, i.e., borrowers do not need to pledge any asset to avail one.
  • Multifaceted Nature: Financial institutions do not exercise any sort of control on the end-use of such cash loans online, putting borrowers at the liberty of using these funds to finance most low-budget requirements.
  • Independent Loans: Availing payday loans does not require any guarantor. Thus, applicants are saved the hassle of convincing another person to vouch for their credibility.

Before availing these benefits of an emergency same day loan, willing individuals must also be aware of what availing one entails.

Payday Loan Requirements – Eligibility And Documentation

Although most payday loan apps like Dave do not mandate strict eligibility norms like credit history check, there are a few standard requirements that applicants need to meet, such as:

  • Applicant must not be less than 18 years of age
  • He/she must be a full-time salaried individual
  • Monthly income must satisfy the criteria of lending institution
  • The borrower must hold an active bank account
  • Applicant must be an Indian citizen

Besides, a successful payday loan application also involves submitting the following necessary documents.

  • Identity proof
  • Proof of residence
  • Income proof
  • Letter from the current employer
  • Passport-sized photographs
  • Age proof

The eligibility and documentation requirements of a payday loan might come off as the simplest compared to all other forms of credit. But some specific disadvantageous features can outweigh all benefits of these financial products.

Payday Loan – Drawbacks

Personal cash loans like payday loans act as advance salary India, and they make emergency expenditures easier even with an almost barren bank account. But do not let their easy availability blind you to their more precarious facets like:

  • Such means of instant cash loan comes with extremely short repayment tenures ranging over a maximum of 2-4 weeks, often leading to increasing default rates.
  • These funds’ unsecured and short-term nature put lenders at greater risk, leading them to charge strikingly high payday loan interest rates up to 2% per day. Although the daily rate might not seem too intimidating, the Annual Percentage Rate or APR can range from 36% to 730%, depending on the time taken to clear all debts.
  • Adding to the high borrowing cost are complementary charges like substantial processing fees.
  • Overestimating one’s repayment capabilities can lead to borrowing more significant funds, and land borrowers in a debt trap. Inability to repay these loans in time result in lump-sum penalties, which, coupled with all the other charges, make for costly funding.

Heading on to avail a payday loan without prior knowledge of these features might land borrowers in grave danger, costing them more than doing them good.

A more reliable alternative to your “payday loan near me” searches can be a gold loan from a reputed lender.

Advantages Of A Gold Loan Over Payday Loan

The following table might help you gain a detailed perspective on how a gold loan can benefit you better than a payday loan same day in India.

Pointers

Payday Loan

Gold Loan

Credit Type

Unsecured

Secured

Interest Rate

Extremely high, coupled with processing charges, and even higher for defaulters

Comparatively lower

Loan Amount

Small

Substantially high

Documentation

Elaborate

Only KYC

Repayment Tenure

Concise, 2-4 weeks

Comparatively longer, can go up to 12 months

These are only a handful of benefits of a gold loan over a payday loan. But, these barely scratch the surface of the advantages you can get by selecting our services.

Rupeek Fintech is an RBI-certified NBFC that caters to the demands of bad credit loans online with multiple gold loan schemes and other offers. Read on to find more about our beneficial services of gold-backed funds.

Rupeek –Your Best Gold Loan Partner

Ever since its establishment, Rupeek aims to make borrowing funds easier with an instant online gold loan at your doorstep. With lending partners like Federal Bank, we have won over 1 lakh Indian families’ trust in 4 years. Check out the features that make our gold loan a lucrative option for all financing needs:

  • Affordable Rates Of Interest

Rupeek takes the burden off hefty borrowing costs with the lowest interest rates starting from 0.79% per month. Borrowers can also avail additional discounts with early and more frequent repayments.

  • Greater Funds

Get high-value funds up to Rs. 1.5 crores to suffice for all sorts of financial requirements, from paying rents to funding higher education. Get an estimate of funds available against your gold items with our online gold loan calculator.

  • Flexible Repayment Schemes

We allow convenient repayment of gold loans with options of traditional EMIs and any payment any time during the tenure. The interest payment is, thus, manageable with us.

  • Prompt Loan Disbursal

An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified and gold appraised from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.

  • Balance Transfer Facility

Rupeek offers loan transfer facility for individuals willing to shift an existing gold loan or even personal loan. All you need to do is submit your loan pledge card along with required documents after clearing all outstanding payments with the present lender. Thereafter, enjoy savings as much as Rs. 12,377 on per lakh interest payment.

  • Uncompromised Security Of Collateral

With Rupeek’s best-in-class security procedures, borrowers need not worry about their gold ornaments’ safety. We ensure safe transportation of gold items in GPS-equipped bags. They’re locked in secured vaults within a 5km-radius of your residence. Rupeek also provides gold insurance coverage against any damage or theft.

In addition to the above advantages, Rupeek also extends the benefits of an exclusive gold loan overdraft facility to enable existing customers avail funds even more effortlessly.

Rupeek’s Gold Overdraft Loan Facility

When in need of immediate short-term funding, benefit better with Rupeek Quick than payday loans online. This is our gold overdraft loan facility, which allows existing borrowers to avail a credit limit against additionally pledged gold. Customers can then avail instant funds from within that limit as per convenience and bear interest only on the withdrawn amount.

This means of quick finance also requires no documentation. All you need to do is be a part of our customer base.

Apply For A Rupeek Gold Loan At The Earliest

Avoid the perils of a payday loan and avail a Rupeek gold loan in minutes in the following simple steps.

  • Go to our website or app to request for a loan.
  • Schedule an appointment with our representative to complete the verification process and get ornaments appraised from the comfort of your home.
  • Get funds transferred to your account instantly after the loan approval.

You can also utilise these funds to clear all debt if you are already caught in the recurring payday loan trap. To permanently prevent such penalty mishaps, choose Rupeek gold loan and enjoy the most beneficial borrowing policies. Apply now!

Rupeek ad
Benefits of Gold Loan over Payday Loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
Comparision Parameters Payday Loan Gold Loan
Interest Rate 2.39% 0.79%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
Rupeek ad

Frequently asked questions

  1. Can I avail a payday loan if I am unemployed?

No, in order to avail a payday loan, you must have a constant source of income, most preferably be a salaried individual. Gold loans can be a better alternative if you are unemployed.

  1. How many payday loans can I avail at once?

Generally, it is safe to go for a payday loan online apply for a second time, only after you have repaid the previous one or are sure your debt-to-income ratio permits another loan. Lenders, anyway tend to cut borrowers off for 30 days post 3 successive loans.

  1. Can an unpaid payday loan hamper my credit score?

Yes, if not repaid timely, your debts will be sent to a collection agency. If reported to the national credit bureaus, it can hamper your CIBIL score.

  1. Do I need CIBIL score to get a gold loan from Rupeek?

A credit score is not mandatory for a gold loan from Rupeek. You can secure a loan with a low score as well.

  1. Can I get a gold loan faster than a payday loan?

It depends on who you are borrowing from. Disbursal of a payday loan usually takes around a few hours. A gold loan from us gets sanctioned and disbursed within only an hour.

  1. What is the procedure to partially repay a gold loan?

Visit the ‘Repay your Loan’ page and log in with your registered mobile number and OTP. Under the payment option, select “Part Payment” and proceed with paying any amount between your monthly interest and full-closure amount.

  1. Can I repledge an existing loan?

If you wish to repledge your jewellery items to continue a loan, kindly contact our customer helpdesk.

Rupeek ad
gold img
Apply for Gold Loan 30 Minutes Doorstep Service
close
+91
Please enter valid Mobile Number
close
success img

Loan Request Successful

Your request has been received, our customer relationship manager has been notified and will call you shortly