No matter how much you save for a rainy day, there are situations when you fall short of funds you need. Sometimes, no amount of groundwork is enough to prepare you for emergencies. Life happens, and it hits you in the face. It may be a medical emergency, a sudden job loss, or a need for cash to pay your bills until your paycheck arrives. Such situations create an urgent need for funds.
In such situations, borrowing from friends and family looks like the only viable alternative because you can’t wait long enough for a loan to be sanctioned by the bank. Fortunately, there’s a way out, called a quick cash loan. It is an emergency loan to help you meet cash demands at crucial times.
About Quick Cash Loans
Quick cash loans are fast becoming a popular source of credit, especially for those in urgent need of funds but don’t have a very high credit score. It is undoubtedly a smart borrowing solution for the short term provided you can pay it back on time. These loans differ from traditional loans because the processing time is a lot faster in these cases, and funds can be disbursed within a day.
The documentation and the eligibility criteria are not as stringent as that of banks, and therefore, even those with not-so-perfect credit scores can get funding. The lenders, in this case, are licensed non-banking financial institutions approved by the federal laws.
Benefits of Quick Loans
A quick cash loan offers quite a few benefits over traditional loans from banks. They have simple borrowing criteria and require just a few vital documents. If you are above 18 years of age, have fiscal proof, prove your citizenship, and have a stable income source, you are eligible for one. All you need in terms of documents is an active fiscal record, proof of citizenship and proof of salary.
The loan processing is a lot faster. The application process is online and takes hardly a few minutes, and funds are disbursed to your account within 24 hours. In some cases, you may get the loans on the same day if you apply within business hours. So, you don’t need to wait endlessly for weeks to get access to funds.
What to Know Before You Borrow
Quick loans, undoubtedly, provide easy access to funds, but here are a few things you need to keep in mind before you borrow.
These loans are offered by payday or private lenders, and therefore, may carry higher rates of interest than traditional loans from banks. You should only go for these loans if you need emergency funding.
These are short term loans, so make sure you have a repayment plan before you borrow the funds. Calculate the monthly EMI and how it will impact your finances over the term length.
Finally, shop around with different lenders before you settle with one. You are in urgent need of funds, but you shouldn’t rush through it. You might land yourself a good deal!
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