Military payday loans UK are a modern borrowing solution for military personnel. They work in much the same way as conventional short-term loans but are specifically designed for the men and women of the armed forces. As such most are repayable within a month and will be charged at a rate of up to 25%.
Payday loans UK are generally available to borrowers who are deemed to pose too great a risk to traditional lenders along with anyone else who just needs a little extra cash for a brief period. They are very much a modern solution to money worries and have really come to prominence since the banking crisis in 2008.
With lenders not wanting to take undue risks many tightened up their rules on borrowing. This meant that many people have found themselves out in the cold when looking to get a loan, forcing them to seek alternatives. One of the most popular of these has been payday loans UK.
Just like civilian workers, military personnel can occasionally find that money is tight. As such, they find it necessary to seek financial assistance. This isn't always easy though, particularly for those who have been abroad for long periods and therefore unable to manage their finances at home or improve their credit rating. There is also the added issue of being employed in what is perceived to be a high risk environment.
All of this adds up to more risk than many banks are willing to accept. Therefore, workers in the military have to seek the money elsewhere, which is why so many now choose to turn to military payday loans UK.
The idea of these short-term loans is to provide borrowers with an opportunity to get a relatively small amount of money, often a maximum of £1,000, which they will then repay on their next payday - assuming this is less than 31 days. Therefore it isn't a solution for those who are seeking larger amounts of money, or will be unable to repay in full within the required time frame.
Lenders take on a lot of additional risk by accepting applicants with poor credit ratings and, in the case of military payday loans UK, those in dangerous employment. As such some of this is passed on in the form of higher interest rates. Those who offer these specialist loans will generally charge up to around 25% for the privilege. This is slightly inflated when compared with rates you might expect to see from a bank, but it's certainly a better alternative to riskier forms of borrowing.
The good news is that you can complete your application online usually, which means that you can sort out a payday loan at any time and wherever you are in the world. As long as you have a valid UK bank account with a debit card attached, you should be eligible to apply. Short term lenders generally use your salary as a guarantee, therefore as long as you earn more than you're applying for (most require a minimum salary of between £500 and £750 a month) you shouldn't encounter significant issues.
The whole process is extremely straightforward and can be completed in next to no time at all. Most military payday loan providers will be able to give you a decision within a matter of seconds. If accepted, you are likely to have the money in your account by the end of the same day, often even quicker.
Military payday loans UK therefore are a fast and accessible borrowing option for all personnel in the military. Even if you have poor credit, you could still be able to get your hands on valuable funds when they are needed most.
