Payday loans in Sri Lanka are the easiest solution to get a quick loan. With the sudden rise in popularity of payday loans in Sri Lanka, there are also many misconceptions surrounding online lending.
Let's take a look at exactly how payday loans in Sri Lanka work, how they manage to provide such a useful service in such a short period of time, and what has made them so popular.
Payday Loans - Best Lenders of Sri Lanka
Lotus Loan to Rs.80 000
| Loan amount: | Rs.15 000 - Rs.80 000 |
| Loan period: | 7 days to 182 days |
| Interest rate: | 0.01 to 1% per day (max APR 365%) |
RoboCash to Rs.25 000
| Loan Amount | Rs.Rs.5 000 - Rs.25 000 |
| Loan period | 7 days to 180 days |
| Interest Rate | 0.01 to 1% per day (max APR 365%) |
CashX to Rs.50 000
| Loan Amount | Rs.5 000 - Rs.50 000 |
| Loan period | 7 days to 180 days |
| Interest Rate | 0.01 to 1% per day (max APR 365%) |
Fino to Rs.100 000
| Loan Amount | Rs.3 000 - Rs.100 000 |
| Loan period | 7 days to 180 days |
| Interest Rate | 0.01 to 1% per day (max APR 365%) |
What is the loan term?
- Minimum loan term: 30 days
- Maximum loan term: 182 days
Am I eligible for a loan?
- A citizen and residing of Sri Lanka
- Between the ages of 20 to 65 years old
- Currently employed or generating a steady income
The loan is calculated as follows
- Loan amount: RS 30.000
- Loan period: 122 days
- Consulting fee: RS 3.600
- Service fee: RS 13.920
- Interest rate (12% / year) : RS 754
- Total payment: RS 48.274
What is a payday loan?
A payday loan is a type of short-term loan with a low cost that can be obtained in a few hours and is in demand for those who urgently need cash due to an unforeseen situation, such as a medical emergency, home renovation, etc. As soon as the borrower receives a salary, he immediately returns the loan taken to the salary. Therefore, this type of loan is called a payday loan. Everything is simple!
But because payday loans in Sri Lanka sound too good to be true, most people are still wary of payday loans. But if you just take a close look at exactly how online payday loans work, you might find that it's not as scary or insidious a practice as you might think.
First of all, clients should be fully aware of the applicable interest rates and service fees for payday loans in Sri Lanka. Many companies usually charge a daily service fee, so depending on the repayment date chosen, the additional amount will be fixed. All information regarding fees and repayments is clearly stated on the website of the credit company. Therefore, carefully read the contract before agreeing to an online payday loan.
The importance of timely loan repayment
It is also very important to repay loans on time before salary! This is something that many people tend to overlook and end up paying high late fees and additional interest for each day they delay repayment. While payday loans in Sri Lanka are mostly issued on virtual platforms, all loans and repayments are recorded and affect each person's personal credit score as these online platforms keep a record of their payments and their omissions. Due to the fact that many clients did not read the terms they agreed to before accepting them, payday loans in Sri Lanka got a bad rap. This is the mistake most customers make: They tend to not read any terms and conditions when they have an emergency.
Loan for new borrowers
New borrowers will find that they are only eligible to take smaller amounts of money in their first payday loan. This is usually because the systems do not have the credit history of these new customers as they are applying for the first time. Depending on the client's payment trend and if the client pays on time, clients can increase their credit score.
Repeat Borrowers
If customers pay off the first loan they receive on time, they will be able to get a second loan right away. An easier way for clients is to pay off all their follow-up loans in a timely manner, which can help them get and receive higher amounts in their follow-up payday loans. This practice not only helps build customer confidence in their chosen institution, but actually helps build a strong credit score that will make applying for personal loans or credit cards at banks more feasible in the future.
Benefits of payday loans
Payday loans have become so successful because they cater to a large segment of the market that is simply not available to traditional banks and private loans. The popularity of payday loans has increased dramatically in recent years, not only because of their uniqueness (high speed and low cost), but also for two more reasons.
Less Documentation
Firstly, payday loans do not require the provision of a large number of documents and documents (for example, letters from employers, bank statements, pay slips, etc.); This is because the concept is designed in such a way that this documentation is not required for a credit check. Clients are evaluated using two different checks, one of which is an internal evaluation model in which a client's application goes through a series of automatic checks that determine whether the client's application is approved or not, with a manual check. The second is manual human verification, where verifiers call the client to check the data entered into the application for validity or falsity.
Online loans
Secondly, thanks to the introduction of online payday loan services, this entire process can be carried out using a mobile phone, tablet or computer from the comfort of your own home. Apply and get a short-term personal loan within hours without leaving your seat. It's as simple as it gets.
FAQ - Payday Loans
