Very few lenders are now offering text payday loans in the UK. The service involves immediate application processing and instant funds transfer on approval. For lenders, offering such a credit facility is labor intensive and full of risk, while for the borrowers it is like a best friend.
Simple application process – online
The application process for text loans in UK is quick and easy to follow. You just have to fill an online application form and sign a loan agreement to be able to request a loan via text message immediately and at any time after that. The SMS must have a unique customer PIN code (provided by lender) and the loan amount in order to let the lender process the loan request. The lender then attends to the loan request immediately. He may contact you to confirm your request and to discuss the loan repayments terms before transferring the funds into your bank account.
How Text Loans Work
Once the money is transferred to your account, it needs to be repaid within 18 days along with the interest and other charges (if any). Example: for every £100 text loan, you may have to pay around £20 as interest and works out as representative APR of 3943%. Initially, being a new customer, you may be able to borrow up to £100 only, but once a positive track record is established, the lender may increase your credit limit for next time, like up to £500.
According to the finance law in UK, all lenders providing text loans need to offer a responsible lending service. Like, they can only lend to people with regular income, preferentially someone having a permanent employment. This is to make sure that the borrower is able to make the loan repayments on time. The law also restricts the lender to charge a reasonable fee and treat the customers fairly even in an event of missed loan repayment. The miss payment penalty, loan interest rate, additional fee are all caped, and no lender can charge you above the maximum limit imposed by FCA. If you have any doubts with regards to your loan terms and conditions, the lender is supposed to assist you immediately (during the business hours).
Some lenders make their services more competitive by sending out a reminder SMS well in advance of the due date to help customers avoid missing the text loan repayments. While other lender may differentiate their services by offering super fast cash transfers like within 10 – 15 minutes. Know more feel free to visit at http://www.textaloan.org.uk/