Whenever you apply for any type of short term loans, you will be asked to provide some basic personal details. This would always include your first name and surname, address with postcode, how long you have been residing at the provided address, date of birth, gender, email address, mobile phone, marital status and if you have any dependents. You would also need to provide details pertaining to your employment and income, whether you are salaried or self employed. You could be running a business too. These details usually include primary income, name of the employer or business you own, the industry you are in, how long you have been employed, self employed or in your present business, work phone, monthly take home pay and when you get paid.
Every provider and facilitator of short term loans will have an application form wherein you would need to mention the loan amount, repayment term, purpose of the loan and your banking information. The latter will require the name of your bank, sort code, account number and type of debit card you have. Almost all payday loans will ask you for these details. It is customary for loan processing and subsequent approval. In some cases, you would have to provide some more information. For instance, while applying for payday loans through Cash Kitty you would have to disclose if you have any debts over five grand. You would also need to share details of your monthly expenses such as mortgage or rent, household expenses including utilities and foods, transport and credit card expenditure among others.
You might wonder if such details, specifically the disclosure pertaining to monthly expenses and debts, are at all necessary. Not all lenders ask for such information. However, those who do are more serious about lending you money. Payday loans are unsecured and hence there is no collateral. A lender will always want to know if a borrower has the ability to repay. Knowing the monthly expenditure will allow a lender to assess the repaying ability. If a borrower earns two grand a month and spends around nineteen hundred, then the repaying ability is a hundred pounds in thirty days. It is almost impossible for such a borrower to repay five hundred pounds in a month.
The disclosure of personal financial commitments including monthly expenses and existing debts is not for the purpose of facilitating the denial of payday loans. It is to determine the reasonable loan amount that lenders can safely offer to a borrower, thereby reducing their risks and also enabling the borrower to get some money which one can repay without major changes in their lifestyle. People cannot simply avoid rent or mortgage payments, dramatically reduce the expenses on foods and utilities, avoid transport or not repay existing debts. All prevalent financial commitments have a direct impact on the ability of a borrower to repay and hence lenders should rationally take such realities into consideration. This effectively helps borrowers get the short term loans they can repay.