Fast cash loan refers to a loan in which borrowers don’t have to wait for long to get their funds or get approved. This requires minimal documentation, and hence opting for this can be perfect for those people who need some emergency cash or when they are going through bad days.
Since fast cash loans have been gaining popularity recently, here is everything that you need to know about them before you apply for one:
1. What’s the process for getting a fast cash loan? When you are applying for a fast cash loan, you don’t require collateral, making it easy for you to get a loan. You can either apply for it near a store or get it by filling out an online application on the lender’s app or website. Your loan application only takes a few hours to get approved, and you don’t necessarily need a good CIBIL score.
When you apply for a fast cash loan, your lender might ask you for your income proof, personal contact details, identity proof, and they’ll also check your account information.
2. Fast loans are easy to qualify As the title suggests, fast loans are easy to qualify for and have easy qualification criteria. Your credit score is rarely taken into consideration which means that the chances of your loan getting denied are rare. Since these lenders don’t consider your credit score while giving you a loan, your credit score doesn’t get affected negatively.
3. Fast cash loans don’t allow you to borrow a large sum of moneySince fast cash loans are easy to get, they don’t allow you to borrow a large amount of money. These loans are meant to help you in emergencies like an accident, medical sickness or something else, and the interest charged is usually higher than other available loans. Hence, when you are applying for a fast cash loan, make sure you don’t demand a lot of money.
4. Your credit score isn’t required while taking a fast cash loanWhen you apply for a personal loan or a home loan, lenders usually check your credit score first to see if you qualify for getting a loan or not. Your credit score gives them an idea of your credit history, and when that’s too low, many people get rejected. However, fast cash loans don’t require your credit score, which means that you can get the loan without any problems in most cases.
5. They are unsecuredSince fast loans are unsecured, you won’t lose your car, house, property, or any other assets you own even when you become a defaulter. The lender might ask you to allow him to access your bank account when you fail to pay the money back, and hence it is recommended that when you take a fast loan, make sure you pay it on time.
6. Fast cash loans have the highest interest rate Since fast cash loans are the easiest to get and don’t require any collateral, lenders usually make the highest money on them by charging high-interest rates. The interest charges depend on the lender you are taking a loan from, and in most cases, the amount has to be paid back within a few weeks.
7. Fast cash loans vary by states Before applying for a fast cash loan, you must learn your state’s rules. Some states prohibit their citizens from getting fast cash loans, whereas other states have a limit on the loan amount. ConclusionWhile a fast cash loan is an excellent option for the people who aren’t eligible for another loan, others should try to look for an alternative loan option that comes with a lower interest rate because, ultimately, your priority should be paying the lowest amount.
Author Bio:Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@freopay.com.
