Loans have been a way out for dreamers to become achievers. In modern generation taking loans have become easier and faster than before, even though loans today still need credentials and collaterals. Traditional loans are still quite slow, and the borrower has to go through a number of investigation and still there may be a chance that he is denied.
Personal loans are a confused way to obtain loans, but lenders have made a way out for the borrowers. Same day loans and also one hour loan is the solution that lenders have come up with.
Need For Same Day Loans
Same day loans are needed at times of extremity. Some of the emergencies maybe:
- Repairing vehicles. In today’s generation, everyone is busy and has to be punctual; owning a vehicle helps fight these problems. Accidents are unpredictable, brake fail, breakage of window glass, etc., needs attention as soon as possible.
- Repairing house, furniture’s, plumbing, repairing holes on the ceiling or floor, etc.
- Recovering the cause for flooding in the house and getting the necessary services done.
- Certain business requires a lump of money as quickly as possible.
- Emergencies like these require a certain amount of money which may not be available with the borrower. At that time the same day loan comes into play. The amount that is present with the borrower at the time of need may not suffice, but with same day loan, the borrower does not have to worry about the emergency financial crisis.
Features Of Same Day Loans
Same day loan is beneficial because:
- Strict credit checks are not done.
- As the name suggests, same day loan can be accessed on the same day the application for a loan has been submitted.
- Poor credentials do not affect the lenders (bank, financial support institutions), so approval for the loan is not a problem for bad credit score borrowers.
- Same day loans are perfect for low scale amounts.
- Processing for same day loans is hassle-free, unambiguous, safe and secure.
- Least to no documents required at the time of application.
- These loans are accessible to everyone.
- These loans allow the borrowers to get out of the financial crisis at the time of immediate need.
- Lenders of same day loans have given the borrowers unlimited options through which they can repay.
Facts About Same Day Loans
Before taking same day loans, the borrower should be informed about certain facts. Some of them are:
- Same day loans though are very attractive, but they charge a very high interest rate over their loans.
- It is preferred to use same day loans at the times of immediate financial crisis to avoid the debt that the loan causes.
- Since it is a short term loan, the borrower must be updated about the payment period, exceeding the payment day charges a penalty fee.
- While taking the loan, the debtor must also consider the processing fee which is cut down from the loanable amount. So the debtor must add the processing fee with the amount required and then apply for a loan.
- Same day loans do not require too many documents or collaterals, but they do need an active bank account with active cheques.
Why Do People Opt For Same Day Loans?
The borrowers opt for same day loans when:
- They are unable to raise money by themselves.
- Too embarrassed to ask relatives or friends.
- Having a poor credit score.
- It is easier to access same day loan than any other loans.
- The urgency for money.
Traditional Loans Vs. Same Day Loans
- There is a large amount of difference between traditional loans and same day loans. Some of them are:
- Traditional personal loans require a large number of documents and collaterals for loan approval whereas same day loans require a minimum amount of documents and no collaterals to approve the loan.
- Traditional personal loans require a great deal of time to process the loan, and it is never on the same day as the application was submitted. Same day loans as the name suggest requiring a minimum amount of time to process the loan.
- Traditional personal loans charge a cheaper interest rate and are available for a longer period of time. But same day loans charge high-interest rate and are to be paid in a shorter time period than personal loans.
- Traditional loans can provide a large amount of money wherein same day loans are perfect for a small lump of money.
- Traditional loans are usually prolonged loans but same day loans are short term loans.
- Traditional loans do not cut the processing fee from the loanable amount whereas same day loans do.
Same day loans are quite different from traditional loans. These loans are made available to those who are going through an unaccounted financial crisis. These loans are basically for emergency purposes; hence they are faster than regular personal loans.