Financial emergencies aren’t the most pleasant experiences because, they were unplanned for. Emergency medical bills, cash shortfalls, car repair and other unforeseen expenses could come out of nowhere, leaving you with no choice than to look immediate solutions.
These financial difficult moments can be managed by taking up same-day short-term loans. These loans are available across the UK, and are recognized by both state and federal government.
How do you get an emergency loan?
This is dependent on the urgency and what you are looking for. You can apply for these short-term loans online or in-store. Online application makes for easy and stress-free loan but, comes with higher interest rates. Online platforms do not necessarily require you fax any documents to them. While in-store short-term lenders, are the opposite of online lenders.
Features of emergency short-term loans
Apart from short term loans providing help during financial emergencies, they have other remarkable feature. Here are some of them:
Highest amount of loan
The maximum amount of short-term loans have been authorized by FCA, though these lender have the power to fix the lowest amount the can lend too borrowers. That doesn’t mean that they can’t limit maximum amount below the maximum approved amount but, can lend according to their capacity.
These short-term loans are mostly referred to ‘Same-day loans’ due to their nature of being approved and granted the same day. That’s why payday loans have gained wide acceptance despite all the negative criticisms attached to them. They bail people out of problems speedily as a result of their turnaround time.
It is no longer in the hands of lenders to determine the Annual Percentage Rate (APR) but, that’s determined by the FCA. Previously the fees were high until FCA took over the regulation of lenders’ activities. Though, these loans vary from state to state.
Store network of loan provider
Some of these online short-term lenders have physical establishments where a borrower can go to pick his/her funds. This is one advantage in-store have over online platforms because, most online platforms do not have physical establishments.
Quick access of fund
This is one vital factor people opt for short-term loans—the application process is faster than the other traditional loan sources. Borrowers who apply in-store are more likely to get their loans approved and granted within hours; while online applicants might receive theirs that same day, or the next business day. Unlike other traditional sources, who take long time in processing loans.
Use the money for any purpose
Emergency cash loans are meant to tackle financial emergencies but, lenders do not place restrictions on what to use these loans for. You can use the loans for anything but, legitimate.
There are many emergency cash lenders at your services. So, you are opened to quite a number of choices—dependent on the type of loans you want.
These loans are meant to provide temporal solutions to temporal financial problems. That’s why they are provided on short-terms, not more than a month.
No need for collateral
They are unsecured loans, you don’t need to worry about providing security before applying. It is why their interest rates are higher than usual.
High interest rates
This is why these loans are mostly criticized—high interest rates. Their interest rates are higher than other types of loans. This is justified by their speed in giving out loans.