These £100-£1,000 loans are designed to help manage sudden emergency expenses and small cash needs until other sources of income are available. Depending on the lender, loans of 100 pounds to 1,000 pounds are easily obtained based on income level and the amount earned on the next payday.

A guaranteed payday loan is only designed for short term needs...

...and is usually repaid within one to two weeks, depending on the particular loan and the lender's policies. As a short term loan, the lender charges a set fee per 100 pounds borrowed, which is counted as the interest rate in the contract details.

The eligibility requirements for any payday loan in the UK require proof of employment, proof of income, details about identity, an address and an active bank account. All applicants must also be UK citizens and 18 years old or older.

Other qualification standards are set by the particular lender rather than provided on a general basis. Some lenders might have further eligibility requirements while others use only the general requirements to determine if individuals are qualified for funds.

As with any other loan, laws govern the payday loans in the UK.

The government does not regulate loan charges, so lenders decide what they will charge based on the risk the lender takes and the type of loan provided.

While the maximum loan amount and fees are not regulated by the government, the UK does require the lender to provide the details about how much interest is charged on the loan. This is stated up-front before signing the contract and is determined on a yearly basis. Before applying for the loan, the lender is required to provide the average interest rate they charge customers.

The lender must also obtain a license from the Office of Fair Trading before providing any loans (see footer of our site for the CCL and DPA details if in doubt). If the lender does not have a license, they are illegally providing loans to consumers. The UK does not have any further laws to regulate payday loan lending.

Obtaining a payday loan is a useful way to handle sudden expenses for a short period of time. Since the loan is not designed for long term needs, it is a very viable solution for anyone needing quick money to pay for bills or unexpected costs, should the need arise. The loans are also ideal for emergency expenses or avoiding late fees on bills that cost more than the loan fees.