It happens sometimes that we run out of money right in the middle of the month, and then we have those dreary 15 long days before we get paid again. What happens if we fall in any emergency situation where we need some urgent money, and fast? You try and get a loan, right? However, the huge long term loans are not always the most logical solution in these situations. Let’s see what happens when you take a long term loan involving a considerable amount of money. You have to pay it out in instalments, and after a certain period when you have covered their interest costs, you are allowed to pay it all at a time, in the form of foreclosure. Sometimes, in case of foreclosure, you are even made to pay a small amount as fine since you are denying the bank or any financial institution the right to extract more money out of you in the form of successive monthly instalments including interest.
If you need a relatively small amount of money, there’s no point in toiling behind the long term loans. This is why the banks and financial institutions have come up with the idea of small cash loans. A relatively small amount of money is involved for a much shorter period of time. The repayment period varies from two weeks to at most, a month. The idea behind this you should be able to repay the amount back once you get your salary. This brings to the next point in discussion, i.e. the eligibility criteria for these loans.
All that is required of you is to have a valid and active bank account, and a fixed monthly income. That does not even qualify as a full-fledged criterion that needs to be fulfilled in order to be able to avail one of these loans. No credit check is involved in the process. So it does not matter if you have defaulted on any loan in the past. They are not going to bother about that. This is a reason why these loans get processed so fast and you get the money at hand within a day of applying for the loan.
All you need to do is to fill out a form, providing the necessary information. The rest is taken care of by the executives who process the form, and takes care of all the back end work. Do a little research before you finalise on the kind of loan you take and who you take it from. Interest rates vary from one agency to the other, and it is always smarter to choose the deal which suits your needs the best. There are secured and unsecured forms of these loans too. Like traditional loans, here too the secured ones come with a lesser rate of interest than the unsecured ones. This is quite normal since in the case of the unsecured loans, you are not keeping any collateral in case you default. However, if you are sure to be able to repay the amount within the stipulated time, it is better to go for the secured ones since the interest rates are low.