Deviating from the traditional concept of borrowing large lenders and banks, fast cash loans have gaining immense popularity. Maybe your car has broken down or an unforeseen medical bill just came up, small loans come in handy to tackle such unexpected expenses.
A fast cash loan is a fixed amount of money that is paid off after a short period of time. Cash loans offer several benefits:
- Quick and Easy – Cash loans are also called fast loans as they live up to the name on all fronts. The application, approval and disbursal are all prompt. There is no extensive paperwork or endless red tape to get through. Fast cash loans have easy terms and conditions. These cater to modern consumers who value convenience over many other factors.
- Online Procedure – Typically, a traditional form of borrowing would require you to go to a bank and fill out application forms. Cash loans save you from all the trouble. Whether you are at home or away on a trip, you can easily avail yourself of a cash loan. The entire procedure of obtaining a cash loan is carried out online. All you need is a computer and an internet connection, and you can apply for a small loan on the fly. From application to approval, the entire process takes place online.
- Quick Approval – Quick approval is one of the reasons why small loans are advantageous in the case of emergencies. If you are facing an emergency, there is no time or patience for time-consuming paperwork. After the application process, small loan lenders will quickly process and approve your application, usually within the same day.
- Collateral – A collateral is a form of security that you pledge against a loan. While most forms of traditional loans require collateral, you don’t need one for a cash loan. Being a form of unsecured loan, it lets you enjoy the benefit of not putting your house or car at risk. You wouldn’t want to jeopardise your assets, therefore as long as you have a stable income source and a favourable repayment history, you can apply to obtain a fast cash loan.
- Same-Day Transfer – An unexpected medical expense or a leaking roof cannot wait until when your next pay cheque arrives. This is when a fast cash loan will save the day. As mentioned earlier, the application and approval for a cash loan are prompt. And so is the transfer of funds to your account. Once you are approved for the loan, cash is usually transferred the same day or even an hour.
- Credit Score – A bad or lack of credit score can impact your eligibility for conventional loans. Even if you are facing an emergency, your application can be rejected on the basis of your credit score. However, cash loan lenders don’t require your credit score for approval. As long as you have a regular and stable source of income and an affirmative recent repayment record, you’re good to go.
While cash loans do offer a multitude of benefits, they also come with their own set of drawbacks.
- While you will receive funds rather quickly, it is also important to consider the short repayment period. If you are facing financial difficulties, be careful before you take out a fast cash loan. It might put you in a debt trap in the long run.
- The online aspect is quite convenient, but it has a flipside as well. Beware of imposters and scams. Though several steps have been taken to control cyber frauds, effective governance is still lacking. Make sure you only borrow from a genuine and accredited lender.
- A credit score isn’t an essential factor that determines your approval for a cash loan. But failure to repay a cash loan will impact your credit score.
- Even though cash loans don’t demand collateral, they do impose a penalty in case of delayed payment. Along with the interest, this amount can easily add up to more than what you can afford.
In conclusion, make sure you research all the available options before deciding on one. Proper accreditations, fair terms & conditions and official certifications are a few things you should look into to determine the credibility of the lender.
