Payday loans: Understanding the basics
Payday loans have become a popular solution for those facing short-term cash crunches. However, it’s crucial to understand the ins and outs of payday loans to make informed decisions. Here, we talk about what payday loans are and how they work.
What are payday loans?
They are short-term loans that provide quick cash to people facing unexpected financial challenges. These loans are typically for small amounts, and the repayment is expected on the borrower’s next salary date. They are also known as cash advances, paycheck advances, or payday advances.
How do payday loans work?
To apply for one of these loans, people usually visit a branch or complete an application online. The application process is relatively simple and typically requires documents such as proof of income, a valid ID and a letter from the person’s employer. The loan amount is determined based on the borrower’s monthly salary and the repayment is due on the next payday.
How are Unifi’s loans different to traditional payday loans?
A different approach
While many cash advance lenders have a reputation for being predatory and charging extremely steep interest rates, Unifi’s Zako loan is a short-term loan that makes life easy. Unifi looks for ways to make our short-term loans simple to apply for and easy to pay back.
Fair interest rates
Unifi offers fair rates that can be as low as 6% for good, returning clients (the more you borrow, the less you pay).
Flexible repayment terms
One of the things that makes Unifi’s loans stress-free, is their flexible repayment terms. When making a payment at the end of the month, clients can choose to make the minimum payment that’s due and transfer the balance to the next month. Unifi doesn’t do payroll deductions. Instead, clients can pay in cash at any branch or via mobile money using our Uniapp (dial *414#).