The world and everything in it is moving at a fast rate and this also includes financial activities. There were transactions that in times past required about 5-10 working days to process that now happen in a matter of hours. Some of these transactions include online bill payments, funds transfers and securities trading amongst others.
In the same vein, one may have financial emergencies that require immediate access to money to take care of them. Thankfully, with technology, one can now apply for and be approved for funds all in one day. These financial products are referred to as Same Day Loan or Pay Day Loan.
The purpose of this article is to explore the process of accessing Same Day Loan, forbrukslån på dagen, in Norwegian, and benefitting from it.
Understanding Same Day Loans
There are different names for these financial products and they include emergency loan, pay day loan and instant loan. These lending options are short term and meant to provide instant financial relief to consumers. Applications for these credit facilities are usually processed and funds disbursed on the same day.
In addition, they do not require collateral so this makes them unsecured loans. This in turn makes it easily accessible to a wide variety of consumers. The sum approved for these loans are usually smaller than the conventional options. Approved sums range from a few hundreds to a few thousand dollars depending on the lender and the individual involved.
Also bear in mind that due to the brevity of the repayment period for this credit advance, the interest rate is usually higher than normal. Another reason for the higher interest rate is the lack of collateral which therefore increases the risk for the lender.
These lenders can either be online or offline but most of them these days are online lenders.
Application Process
The application process for accessing these types of credit facilities is usually simple and straightforward. Find explained below the steps involved in this process:
Research and Compare
The first thing to do in this process is research different lenders that offer this product and compare their offers. Ensure that you research as many options as possible. The things to look out for so that you can make a solid and accurate comparison include interest rates, eligibility criteria and repayment terms. Also read as many customer reviews as possible to help you make an informed choice.
Get your Documents Ready
Prepare all the documents that are needed for the application. These documents include your proof of identity, bank statement and verification of income. Having these documents handy will enhance the speed of processing your application.
Complete your Application
After thorough research and getting your documents ready, go to the site of the lender of your choice and fill out their form. If you chose a lender that is not online, you have to go to their office to fill out an application form. Ensure that you provide accurate records that are up to date to ensure that processing your application will be hitch free. Check out this site for what to avoid when applying for a loan: https://www.experian.com/
Review and Submit
Ensure that you carefully review the terms and conditions of the loan; check the repayment schedule , interest rate and any fees and charges associated with the loan. Be sure you understand and agree with everything before you submit the application. Once you are satisfied with every condition, attach the required documents and submit your application.
Await Approval and Disbursement
After submitting your application, await approval from the lender. This will come only if your application meets the eligibility criteria. Once your application is approved, you will receive notification of payment of the funds into your bank account.
Eligibility Criteria
Although these loans are easily accessible to a wide range of consumers, there are still criteria for eligibility. These criteria differ from one lender to the other but there are common requirements that cut across board and they include the following:
Must be of Legal Age
The legal age as recognised globally is 18 years but there are countries where lenders do not give unsecured loans to persons who are less than 21. So you need to know the legal age for borrowing especially of you live outside the US.
Stable and Steady Source of Income
It is an established fact that many lenders prefer to give same day loans to employees. That is one reason why it is called Pay Day Loan. They believe that they can get their money back because the employee will get paid at the end of the month or every two weeks.
However, for lenders who approve loans for both employees and self-employed folks or entrepreneurs, all they require is that you produce proof of income. Once you can prove that you have the capacity to repay, the loan will be approved.
Proof of Identity
You will be required to provide a government ID to prove your identity.
Proof of Residence
This is usually something that shows that you live in the country where you want to take out the loan. This is most often a utility bill or house payment /rent receipts.
A Functional Bank Account
Aside from all of the above, you must also have a functional bank account. This is a pretty obvious requirement as your records will not be available if you did not have an account.
It is important to bear in mind that some banks or lender may require additional criteria before approving your loan. Some lenders do consider the credit history of the applicant but there are still some lenders that will consider applicants with credit scores that are not so perfect.
Benefits of Same Day Loans
These types of credit offer numerous advantages to consumers in times of emergency. Some of the most common benefits include the following:
Quick Access to Funds
As the name implies, these credit facilities give consumers quick access to funds which enables them to take care of financial emergencies.
Simple and Straightforward Application Process
The process of applying for same day loans is usually straightforward and simple. You can complete the process online in your office or from the comfort of your couch.
No Collateral Required
These types of credits are usually unsecured which means that the borrower does not need to put down any asset of value as collateral. This therefore makes it possible for people who do not have valuables to present as collateral to access funds during financial emergency.
Flexible Repayment Options
Just as with conventional consumer loans, these loans come with flexible repayment options. This allows the borrower to choose a repayment schedule that is suitable for them based on their financial circumstances. Click here for examples of loan repayment schedules.
Conclusion
Same day or pay day loans have been known to save a lot of people from financial disgrace. This financial product has provided and still provides a viable and prompt solution for people who find themselves in unexpected financial quagmire.
It is necessary for prospective borrowers to have a good understanding of the application process and what it takes to qualify for it. Additionally, they should also learn how to responsibly manage the debt after receiving the loan which is very crucial to how much benefit a borrower will derive from the loan.
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