Payday loan payments are intertwined with your payday meaning that the loan is automatically deducted from your next pay. You can pay for cash loans on any agreed-upon date not necessarily on your payday. Other than this, all the other aspects of the two are essentially the same.
Why Go for Cash Loans?
Emergencies are part of life. Your car, a home appliance or that computer you depend on for business operations can break down. Not to forget that you or a loved one can fall ill or you just require some cash to take you through until your next payday. You might need some cash for groceries or for a bill that cannot wait for your next paycheck.
Would you go to your local bank and request a cash advance? When it is an emergency, it means that you need cash fast. You should look for a lender who can offer the required cash in the shortest time possible. In this case, banks would not be the ideal choice. There is a lot of paperwork to deal with and the process can take days or weeks. The approval process is also more complicated than that of cash loans. In addition, most banks would not agree to process small loans.
What are the Benefits of Cash Loans?
Faster Processing: You can apply for the loan and be assured to have it processed and the money deposited into your bank account minutes after being approved.
Ideal for Small Cash Advances: When you do not have money, getting someone to lend you even $100 can seem like a lot to contend with. Cash loan payday lenders can advance you up to $2000, something that most banks will not agree to.
Even with a bad credit history, it is possible to apply for a loan and have it approved. This may not be the case with most banks.
No collateral required: Unlike banks where you must provide security for the loan, cash loan lenders only ask for your personal details.
The requirements are also not as many:
- You need to be an Australian citizen or prove that you are legally in the country if you are an immigrant or a tourist
- Be over 18 years old
- Have a bank account
- Prove that you have a source of income
- Prove identity and address
When you submit these documents, the process should not take more than a few hours.
Is it Advisable to go for a Cash Loan?
Just because you are not dealing with a bank does not mean that the government will not protect you from a lender. All registered lenders have a code of conduct they have to adhere to, failure to which, they can be prosecuted. The government recognizes all cash loans like personal loans. Currently, the maximum interest rate that can be charged stands at 24%. Out of this amount, a one-off 20% fee is charged, thereafter a 4% compounding interest rate on a monthly basis.
Cash loans interest rates are higher than those for other loans generally because they are high-risk loans; there are no collaterals and also cater for people with a bad credit history.
Things to Consider When Applying for a Cash Loan
Why do you need the cash? Is it an emergency? Is it something you can do without or can you squeeze your budget in order to get the money you want? Cash loans can be very attractive due to the fact they have fewer requirements and a fast processing rate. Note that after the loan has been disbursed, you will be paying the amount advanced including the interest rate charged. You need careful articulation. You do not want to strain too much with the monthly loan repayments.
What You Should Know About Cash Loans
The Process is Online: This means you can apply for a loan from the comfort of your home. All you need to do is look for a reputable and registered lender and start the process. Everything from the application to the loan disbursement is done electronically.
The Process is Free: You do not have to pay anything to apply for the loan. Even if you do not qualify for the loan, there is nothing to lose.
No Penalties for Early Loan Repayments: You can make the loan repayment earlier than the agreed-upon date without fear of extra charges or fines. Other lenders may penalize you for early loan repayment.
No Hidden Charges: The whole transaction is transparent. All the charges and rates are fully communicated even before you start the process and where you require clarification, this is offered on time. This means you are fully aware of all the proceedings. You will not encounter some hidden charges when making the repayments or other deductions you were not aware of. As mentioned earlier you are protected by the Australian Securities and Investments Commissions and there are rules and regulations the lenders have to adhere to.
Even without an income you can apply and qualify for the loan if you receive some benefits. Banks only consider a regular income.
Notes on Cash Loans
It is important to consider what different lenders have to offer. Go through their terms and conditions before you sign for a loan. Cash loans are quite an ideal choice when in need of quick cash or you do not want to go through the rigorous and long process that most banks will take you through before you get the loan approved. With banks, you also have to fill a lot of paperwork and have your credit history checked. If the process is not appealing, cash loans may be an ideal choice.
Get to know here about other loan types.