Salaried persons often suffer from the shortage of liquid cash at their disposal when a situation springs out asking for immediate financial attention. Cash loans are preferably designed for these instances only. Cash loan can be understood as the synonym of cash advance loan, post dated cheque loans, deferred deposit loans or payday loans. They are usually small term loans and the amount disbursed under cash loans is also relatively small. They are generally taken to meet the daily requirements in case one is suffering from momentous shortage of cash. The loan is usually available in unsecured form.
Cash loans: Amount and interest rate
Being short duration loan these offer an amount ranging from £ 1,000 to £25,000.The magnitude of the amount also depends on your repaying capability which in turn is reflected in your monthly salary, debt to income ratio, equity in the assets (in case you intend to go for secured loans) and credit history. The loan amount is priced at a larger interest rate compared to other. This is because the loan is given for a very brief duration and more often than not the loan is unsecured in nature. To a borrower the larger interest rate, at first glance, may seem to be distracting factor, but one should keep into account that being a short termed loan the total amount one has to repay is not much .
The numerical growth in lending institutions has led to a predatory lending which is pleasant for loan seekers as they are open to negotiations. But to be able to clinch the best available deal one should gather as much information as possible. One should visit number of lenders and talk to persons who have secured these loans. If one can't afford this due to any constraints then he/she can use Internet. Now a day almost every bank or financial institution has a site of their own all you need to do is to submit your requirements in an online form and they will come back to you with quotes, this will enrich your knowledge at the comfort of staying indoors.
Obtaining Cash loans:
To get the loan you need to fulfill some eligibility criteria, the variations solely depends on the lenders discretion. Some common requirements are as follows:
o You should be a resident of UK and above 18 years of age.
o You should be a salaried employee and should furnish the documents primarily your pay slips, bank statements etc.
o You should have a bank account, to help in transactions between you and the lenders.
Apart from this, lenders may ask for a post-dated cheque with an amount equaling the processing fee, loan amount and interest. This is done in order to protect the lenders as defaulting in repayments can be negated by encashings the cheque.
Cash Loans: uses
One of the most advantageous things concerned with cash loans is that they are disposed within 24 hrs of application as not much verification is necessitated. These loans find their usages in meeting some unbudgeted expenditures like paying for medical bills, getting your car mended etc.
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