Personal and other types of loans are not suitable when a person requires immediate cash as these loans consume some time to get approved. In emergency situations when money is required at short notice only can provide instant solution.
Cash loans are also differently known as payday loans, pay advance loans and cash advance loans. These loans act as bridge between the borrower's desired requirements with his upcoming payday. These loans thus provide borrowers the leeway to counter any unannounced cash emergency.
Borrowers require no collateral to pledge for getting a cash loan approved. He only requires to be an adult, has to be regularly employed with a minimum income of ?1200, has to have a valid bank account which is more than three months. He has to give income proof and age proof for availing these loans. The loan amount will be transferred to his bank account immediately after verifying the information.
Cash loans are small and short term loans. Borrowers can get an amount ranging from ?100 and ?1500 depending on his requirement. The repayment term ranges from 14 to 31 days. In case the borrower cannot pay the loan on the scheduled date, the term can be extended by paying an extra fee to the lender.
Interest rates charged on cash loans are higher than other traditional loans. But this disadvantage can be countered by proper research, both offline and online. Quotes from various lenders can be collected to compare the rates offered. After that the borrower can go for a reasonable rate according to his repayment ability. An online research will be more convenient as it will be faster.
As no credit check is done for approving payday loans, bad credit borrowers having CCJs, IVAs, defaults and arrears can also apply for them.
Cash loans can be availed for any emergency need such as car repairs, overdue electricity bills, outstanding hospital costs, grocery payment bills and any urgent expense. Thus cash loans should be considered in any such situation since they are tailor made to fit emergencies.
