Most of us have probably heard of instant payday loans and some of us have tried out in case of emergency this short term, micro-financing product which usually is handed out only on a short period of time.
In this article, Monily wanted to share some of the good examples of when to use this fast lending product, when to avoid and why is it getting faster than ever to get the loan approved?
The Philippines is not the only place such cash lending services online exist, as an example, we could mention Indonesia, where this type of loan product offered mostly by non-bank lenders is available not long ago but demand is growing as availability and access are increasing rapidly.
The reason behind this service success and growth is money lending process, it can be done online without assistance in less than 5 minutes. It is easy with fewer requirements to qualify and money can be received in less than 1 hour in most cases.
Payday Loan Meaning By Wikipedia.org
“A payday loan (also called a payday advance, salary loan, payroll loan, short term, or cash advance loan) is a small, short-term unsecured loan, “regardless of whether repayment of loans is linked to a borrower’s payday.” The loans are also sometimes referred to as “cash advances,” though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. Legislation regarding payday loans varies widely between different countries, and in federal systems, between different states or provinces.” Source url.
Main micro lending benefits
Filing for loans traditional way in the banks typically isn’t an easy road. That is unless one opts for a payday loan online which is known for its:
- Simplicity and Availability (gives a chance to apply 24/7 using online application form)
- Less requirements (no paperwork)
- Fast Approval
- Often can receive instant cash in 1 hour, max in 48 hours (It depends on the bank you use)
- First loan interest-free ( More lenders steps into the money lending business, more often we will see deals as first-time interest-free loans for new customers.
In few words to receive money in emergencies is easier than ever. You do not need to live in the Manila or other big cities to be able to receive a loan as fast as possible, the stone age is over and the digital age is here to stay.
The truth is that payday loans aren’t as bad as some people make them out to be. It’s just a lending system, after all. The human factor muddies the reputation of legitimate lenders and borrowers. If you will understand each lending product terms and interest rates you will be safe.
When to apply for an instant payday loan?
Here are example scenarios of when to approach a lending company with a payday loan offering.
A family member has gone ill. It goes without saying that falling ill, and worse, getting hospitalized for it, is one of the worst obstacles to a family’s financial security. Nobody can predict such scenarios. Even families with a stash for emergency medical expenses will find themselves to be in need of more money for treatment and hospital bills.
Payday loans help considerably in such situations. In need of a new work equipment. There are a lot of people today who are working remotely. In case you need a quick cash you can use this service and basically start work next day with your new laptop.
Your car brokes down. In this scenario, there is no time actually to go to the bank and wait for loan approval or until you receive your next salary. This is where salary loan might be a good alternative.
These are the three scenarios when the fast online payday loans can help pretty well.
When To Avoid Payday Loans
Conversely, there are scenarios that make payday loans impractical and downright ridiculous. Interestingly, because of personal bias, some are unable to tell that their reason isn’t justified. Here are some deceptive scenarios that some think are worth borrowing money for:
Buying an expensive engagement ring. What else goes with shelling out money for an extravagant purchase? A flash mob. This scenario, of course, is an obviously ridiculous one to fund for a loan. But – for some who are shot by Cupid straight into their eyes – all bets are off.
A moment of inebriated brilliance. It’s no secret that drunk people say the darndest things. Unfortunately, they do the darndest things as well. Approaching a lending institution for a payday loan is one of them. Fortunately, not all lending institutions are that lenient in approving loans.
Important Considerations Before Making The Decision
Having a good reason to borrow money doesn’t always mean that it’s sensible to actually borrow money. Other factors should be taken into account such as the capability to pay for the borrowed amount on the agreed upon date. If it isn’t possible, better not attempt to borrow at all. Lenders are running a business, not a charity, after all.
It’s also worth noting that there are lenders who offer 0% interest rates for initial loans. It’s pretty clear that anyone who wants to go for a payday loan should find one that does. Who doesn’t love a zero interest rate, anyway?
At the end of the day, instant payday loans are kept alive by the mutual respect of lenders and borrowers. Without stacks of paperwork binding the loan such as that of large banks, the trust lenders place on their clients is nothing short of commendable.