Important Facts For Borrowers To Know About Same Day Loans

by Michael Sema Founder and CEO of Get A Rate

A large number of people find themselves facing the problem of a shortage of funds during emergencies.  In most such cases, same-day loans prove to be the most effective way for individuals to cover emergency expenses. This is a type of emergency personal loan that can be taken to cover a wide range of expenses including unplanned medical expenses, or for covering the cost of repairing a vital piece of equipment, or even to pay for wedding expenses, etc. To exploit the best benefits of taking same-day loans, borrowers need to first learn about the key aspects of this highly popular financial product.

A Brief Overview Of Same Day Loans

Same-day loans provide borrowers instant access to the cash on the same day they apply for the loan. These are unsecured loans and are mostly offered by online lenders to customers in need of urgent funding within an extremely short time window. The loans are processed through completely digitized channels and once they have been approved, the amount is disbursed directly into the account of the borrowers. Being an unsecured loan, the borrowers are not required to put up any collateral for availing this funding option. However, they need to be ready to pay a relatively higher interest rate while paying back these loans as it is the only form of security sought by the lenders.

Eligibility Criteria And Documentation Required

Same-day loans are offered only when the borrowers fulfill the eligibility criteria for the same as listed below.

  • The borrowers should be the citizens of India

  • They should be a minimum of 21 years of age at the time of applying for the loan.

  • They should have work experience of at least 2-3 years.

  • The applicants should have a minimum salary as specified by the lending institution.

Applicants also need to furnish the below-listed documents for loan processing and approval.

  • Identity proof if the applicant in the form of PAN Card, Passport, employee ID, driving license or voter’s ID card.

  • Address proof of the applicant in the form of Aadhar card, ration card, utility bill, voter ID or driving license.

  • Salary slip of the past three months and the relevant bank statement of applicants.

Key Benefits Offered By Same –Day Loans

Same-day loans can prove beneficial for the borrowers in various ways. The most important of these benefits are discussed in brief as follows.

Hassle-Free Application Process: The process of applying for same-day loans is extremely straightforward and simple. The applicants simply need to establish their eligibility and provide the necessary documents besides correctly filling in their details in the application form.

Funds Are Easy To Get: In most traditional loans, applicants have to wait for few days for fund disbursal even after the loan has been approved. However, this is not the case with the same-day loans where the applicants gain access to the disbursed amount within a few hours of approval. 

High Approval Rate: The chances of the loan application of borrowers getting approved is quite high, even when they have a poor credit score. This is because the loans do not involve any lengthy paperwork or extended processing formalities or conditions.

Easy Repayment Terms: Same-day loans, like payday cash loans, are designed to serve the short-term funding needs of applicants. Hence these loans are offered with relatively easy repayment terms that last no longer than a few months.

Common Disadvantages Of Same-Day Loan

Same-day loans also have some disadvantages, although these are overshadowed by their advantages. The most common of these shortcomings are listed below.

  • These loans come with an extremely high-interest rate which can be problematic for some borrowers.

  • In most cases, the loans are offered for only a small amount which might not be enough to cover the complete fund requirement of applicants.

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About Michael Sema Innovator   Founder and CEO of Get A Rate

18 connections, 0 recommendations, 92 honor points.
Joined APSense since, February 5th, 2020, From United States.

Created on Mar 12th 2021 01:45. Viewed 147 times.


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