Same day loans are those loans which you need at the times of unaccounted financial requirements. These loans are mostly applicable for emergencies. Usually, when someone applies for a loan, it takes a few days for the transaction, but same day loan as soon as the person applies for a loan the transaction procedures and transaction are made on the same day. Due to technological advancement, in modern days getting loans are made easier. Same day loans are one of the fastest ways of getting loans.
When Does A Person Need Same Day Loans?
Same day loans are not normal loans. These loans are applicable at the times of crisis. Even after putting aside some amount in cases of extremity, sometimes the amount does not suffice for unexpected events. They try to devise money as soon as possible. Hence they depend upon same day loans. Some extremities may be,
- Need emergency money for paying bills, rent, etc.
- Car repairs can come back unexpectedly. In this modern generation, it is next to impossible to go around without one’s vehicle. Sudden brake fails, other mechanical failure calls for repair.
- House emergencies such as plumbing, repairing holes in the floor or ceiling, flooding, repairing wires, electronic devices, etc.
- During these exigencies, the lenders transfer funds in a matter of hours to the borrowers debit account, and the borrowers are then able to use the fund.
Benefits Of Same Day Loans
Some features of same day loan are:
- There is no pressure about thorough credit checks.
- The required funding can be accessed on the same day after the application has been submitted.
- Poor credit history does not bother the lenders (banks, money lending institutions, etc.) for same day loans.
- Minimum to no paper works and faxing at the time of taking the loan.
- Same day loans are usually perfect for commandeering small scale amounts.
- The procedures of taking such loans are transparent, hassle-free, safe and secure.
- There are numerous payback options are at the disposal of the borrower.
- These loans allow the borrowers to meet the unexpected financial crisis.
Considering Same Day Loans Before Application
Before applying for same day loans, the borrower must consider certain points. They are:
- Same day loans are quite expensive after applying for them. They are short term loans, so they are to be paid within a certain time period and before the deadline to avoid additional fees charged.
- Same day loans charge higher interest rate than normal loans, so it is advised to check with other lenders and choose the loan which is affordable for the borrower in the short as well as long run.
- Since same day loans are fast, secure and safe; it is useful for emergencies. But they should be taken only when it is requisite otherwise the borrower digs a deeper debt hole.
- Same day loan though does not require too many documents and collaterals, but they do require an active bank account and cheque.
- Before taking the loan or asking for the amount, the borrower must look at the processing fee that is charged to obtain the amount the borrower needs after cutting off the fee from the fund raised.
Difference Between Traditional Loans And Same Day Loans
There are major differences between traditional loans and same day loans. Some of them are:
- Traditional loans take more than just the same day to process the loan whereas same day loans are faster medium to obtain a loan at the times of emergency.
- Traditional loans though take up more time they ask for a lower interest rate and are a long term loan. Same day loans require a high-interest rate and are short term loan.
- Traditional loans require a lot of document, and if the credit score of the borrower is poor, then the transaction stops. Same day loans do not require such terms, even though the credit score of the borrower is poor the transaction is made.
- Traditional loans require security deposits and collaterals to obtain loans. Same day loans do not require any security deposits or collateral to get the loan.
How Do They Collect Payment?
The lenders (bank, money lending institute) have many ways to collect payments from the debtor. One such medium may include a system which continuously collects payment from the borrowers debit account. With the borrower’s consent, the system collects payment, and the consumer does not have to worry about when to pay or to go through the manual procedures.
Repayments can be made simpler for the borrower by making the instalments more flexible. Borrowers can schedule their dates, times and can also divide the monthly instalments into smaller instalments. The borrower can also extend the period of expiry of the loan. This also has some drawbacks, the borrower, in the long run, has to pay more than supposed to.