The small day loans are the types of loans which are borrowed by the employees for their needs when their pay check hasn’t arrived yet. It is not a much popular type of loan but in most of the states in UK, people are getting this. The lending institutions and the agencies are offering the same day loans on easy terms for the needy employees. As the people working on salaries have limited equity, they need same day loans to fulfill their needs if their money ends before their next salary arrives. The Consumer Federation of UK has approved same day loans under the law and now people can get them legally. According to a recent survey in UK, it was found that these same day loans vary from 200 £ to 2500 £. And the average rate of interest is 25£ per 1000 £ borrowed.

The history of same day loans is not much older. In 1996, the UK government passed a law in which there were some policies for the employees who need cash or credit in case of need. This idea became popular among masses in some years. As in many states, the laws were different, the people used to get same day loans illegally so for benefits of the companies and the people, these loans were legalized.

According to researches and statistics, the same day loans are having more risk and more bankrupt cases are seen in people who take same day loans. The people who don’t pay back the loan are worthless because they had no equity or asset in their name. So this disadvantage is for the companies who issue same day loans to the employee.

Mostly the same day loans are given for 300 £ to 2500. And they are paid back in full amount. There are no installments per month. The interest rate depends upon the lender and the amount of loan granted.