On this page we present what a Personal Payday loan is. The purpose is to create knowledge of Personal Payday loans and give an overview of what opportunities exist in the market. We explain, among other things, what the difference between a overdraft and a consumer loan is, as it is relevant to know if you are considering applying for a Personal Payday loan. In addition, we tell you about the costs that may come in connection with a Personal Payday loan.
Therefore, if you are considering applying for a loan, or just want to get more information on the subject, you have come to the right place. We will guide you through everything you need to know about Personal Payday loans.
WHAT IS A Personal Payday LOAN?
A ‘Personal Payday loan’ is a term that can cover several loan types. When talking about Personal Payday loans, you usually talk about small and medium-sized loans in the order of DKK 5,000-50,000. However, these loans can also be higher depending on which economy you have. A Personal Payday loan can therefore well be given for amounts that are higher than DKK 50,000.
Typically, Personal Payday loans are granted by Danish banks either in the form of a consumer loan or in the form of a cash Personal Payday. Which loan is best for you depends largely on your daily finances and what you are going to spend the money on.
THE DIFFERENCE ON A CASH Personal Payday AND A CONSUMER LOAN
When borrowing money, it is important to know what kind of loan is most appropriate to borrow. When it comes to a Personal Payday loan, this is extra important. Therefore, we will briefly explain what the difference is between a bank overdraft and a consumer loan, respectively.
An overdraft is basically an agreement between you and your bank that you may spend more money than is on your account. When you spend more money than you have on your account, you make an overdraft that you have to pay interest on. Interest rates are agreed in advance between you and your bank. With a cash Personal Payday, you only pay interest on the money you pull over so to speak.
Unlike other loans, there is not necessarily a fixed agreement as to when you must repay the money. Instead, more interest will be charged to your overdraft facility.
An overdraft can, however, be a very good solution if you continuously have a need to spend (little) more money than you have just left on your account at this time.
Cash Personal Paydays are therefore widely used among young people between 18-25 years. But people who are over 25 years of age can also have a great advantage of having a overdraft of higher amounts.
Contrary to a overdraft facility, a consumer loan, like the word Personal Payday loan, is a term for a loan taken out for private consumption. It can therefore be consumption for both the purchase of a trip, a new car or for something completely third.
Here it is entirely up to the individual to decide what money is to be spent on. Unlike a cash Personal Payday, however, with a consumer loan one takes up a large amount which must be repaid within a fixed period. This is called the term of the loan.
A consumer loan can vary from e.g. DKK 25,000 and up to eg. NOK 500,000. The maturity, like the amount, can vary accordingly. A larger consumer loan may well have a maturity of up to 10 years.