In most cases, same-day loans may be the best option because when you are cash strapped or you have an emergency to take care of, the whole process takes only a few hours to complete. When you are in a rush, you do not have the time to go through the rigorous loan processing procedure that most banks will take you through.
You can apply for the loan and have the money in your bank account within an hour. How is it so? Does it seem too good to be true? It might seem so however, the truth is, same-day loans have made the process of acquiring loans simpler than it was some years back.
What Makes Same Day Loans Different?
- The whole process takes less than 24 hours.
- Funds are disbursed electronically not forgetting that the whole process is carried out online.
- You can apply for a small amount of money from only $200 to $2000.
- The loan repayment period is short, usually 7 to 30 days.
Requirements to Apply for a Same Day Loan
- You should be an Australian citizen or live in the country legally.
- Be over 18 years old.
- Have a dependable source of income.
- Have a bank account.
- Have identification documents.
When applying for a same-day loan, your credit score does not determine the loan approval. This means that people with a bad credit history can also qualify for these types of loans. What matters is your current ability to pay the loan. Lenders will look at your current employment status. Even those who receive regular benefits can qualify for same-day loans.
How Does a Same Day Loan Work?
- Fill in the loan application form and submit it, including your identification documents. This is done electronically.
- The lender reviews the documents and within minutes concludes whether you qualify for the loan or not.
- The decision is communicated to you. If you qualify, you need to reauthorize the loan application and the money is sent to your account.
In less than an hour, you can apply for the loan and have the cash to sort out the issues at hand.
When Should You Apply For A Same Day Loan?
It is not wise to go for a same-day loan every time you are low on cash, however, the loan can help you especially when you need to sort out the following:
- A medical emergency.
- Require cash to take you through till your next paycheck arrives.
- Need to take care of bills that cannot wait until your next payday.
- Want to cash in on an offer on items such as home appliances and cars.
Types of Same Day Loans
There are two types of same-day loans. These include:
Payday loans are granted against one’s paycheck. The loan is meant to be paid on your next payday and the cash is automatically deducted from your paycheck. The loan repayment period is usually between 7 and 30 days. It is ideal for small loans from $200 up to $2000. Payday loans do not require a collateral.
Although the loan falls under the category of same-day loans, it requires a security or collateral from the borrower. This may be in the form of properties or vehicles. The loan repayment period is longer and the amount granted more than that of a payday loan. The interest rate charged is also less. You can be given up to one year to clear the loan. This can be no credit check loans as well.
What Makes the Same day Loans Process Fast?
Banks and other financial institutions may take days or even weeks before they approve a loan. What makes the same day lenders manage to offer fast and same day services are:
- Less paperwork: The electronic process makes the paperwork nonexistent and if there is any, it would be very minimal. This means that lenders can go through the application forms in minutes and come up with a fast decision.
- No credit checks: Since the credit history does not determine the loan approval decision, lenders may not need to go through it or if they do, it is just to ensure that you do not have other personal loans to service.
- No collateral required: When a security is required, it might take days for the lender to authenticate and determine whether it can qualify. As none is required to access a payday loan, payday lenders can approve you faster.
- Fewer Requirements: The fewer the requirements, the faster the application process as you will have fewer documents to submit.
The most important consideration for same-day lenders is your ability to make timely loan repayments. They will request that you submit a current bank statement together with other required documents. A quick glance at the statement will help arrive at the loan approval decision quicker. The statement will help the lender identify all your sources of income including your current employment status.
Things to Note When Applying for a Same Day Loan
Although the idea of accessing cash anytime you need to may seem great, this should only be exercised when there is a dire need. Remember that same-day loans also affect your credit score. When you make the loan repayments on time, your score can improve, but if you fail to do so it will be negatively affected.
You cannot apply for more than one loan at a time. The Australian Securities and Investments Commission declares that same-day loans are also categorized as personal loans. You can only access one loan facility at a time.
As a borrower, your interests are safeguarded by the regulatory bodies in the country. The lenders, as long as they are registered with the Australian Securities and Investments Commission and other governing bodies have a code of conduct to adhere to.
The interest rates for same-day loans tend to be higher than those for other types of loans.
Ensure that you go through the terms and conditions before you sign for the loan. Get to understand the interest rates and other fees to be charged and the loan repayment duration. This will help you pay the loan smoothly without straining too much. In conclusion, almost every adult in Australia can qualify for a same-day loan.