An insight on Tribal Payday Loans

Tribal Payday Loans are offered by the tribal finance loan companies who lend money to the tribes. They are in different parts of the country. They encourage the financially stricken people to grow themselves and make a mark in the society by doing farming or other businesses or other personal use the loans are given to all the people for their social and economic upliftment as it offers online alternatives in terms of lending money. Tribal payday loans is a revolutionary change in the society as it has given them a chance to prove their capabilities and equal rights have been truly being utilized via this type of loan.

Eligibility for Tribal Payday Loans

Tribal loans do not have eligibility criteria like normal payday loans. So, anybody with a minimum source of income can apply for a Tribal Payday Loan. A good credit score, bank statements, etc. will not be considered and tracked and there are no other special eligibilities required to get such kind of loans, unlike normal payday lending services. All that needs to be done is filling out an application with all the personal and financial details along with the proof of the source of income. Not much paperwork is involved in order to make the lending process easy and the loan sanction time is also very less.

Tribal Payday Lending vs. Payday Lending

In case of normal payday lending, there is a monthly scheduled date of repaying the EMI of the loan and if failed then he will charge with more interest and hence he will be buried under huge debts. But in case of, tribal payday loan there is no such fixed date as the borrower can choose the date according to its convenience. If the borrower fails to pay within the scheduled date then they can pay it later on without any extra amount as penalty. These facilities are given in the tribal payday lending because the motive is to uplift the needy not to take advantage of their financial crisis and expand the business.

Advantages of Tribal Payday Loan

  • For Tribal Payday Lending, the whole amount is not required to pay on the next scheduled date. People take such loans only when they are in big troubles or in a matter of emergency and in such situations it is difficult to pay the money back in a short time. The tribal lending companies take scheduled payments on the basis of a monthly or bi-weekly time period until the loan is recovered.
  • The rate of interest is very less and very less paperwork. It can be processed in no time and without getting tired as one does not have to travel, stand in the queues and do huge paperwork. So, it’s an easy method to get a loan.
  • These loans were first made for the tribal people but later it has been made for both tribal and non-tribal people. So anybody with financial constraints can apply for the loans.
  • There are generally no hidden charges.

Disadvantages of Tribal Payday Loan

  • Though the interest rate is low, still it is not lower than the traditional money lending companies.
  • The most dangerous disadvantage is that consumers have a very limited protection from the lenders.
  • The lenders who are protecting the borrowers financially may sue them if the repayment is not proper in the due course of time.
  • Chances are less for borrowers to get loans for a higher amount. Apart from traditional loan companies, nobody will risk giving a high amount to the financially stricken people. There are times when if persuaded properly showing the current financial flow of the client, an amount closer to the desired amount can be sanctioned.