Same day loans are when you have to pay the loan amount back on the next morning with the interest. Another name of same day loan is payday loan. These types of loans are short term in nature and also unsecured and that’s why the rate of interest is very high for these loans. Mostly these loans are taken by small business enterprises to meet their daily requirements. The small scale business merchants use to provide these kinds of loans and the loan amount has to be refunded on the next day.
Why not Bank Loans?
There is a common question about the payday loans that why should someone go for a same day loan while there are options to take loans from the banks. The traditional bank loans require a lot of time for the paperwork. You can’t take the amount as per your wish as the banks have separate rules and regulations about the loans. They also have a stipulated period for which you have to keep the loan for sure. On the other hand, the banks don’t provide loans to the people who have lower credit scores. So if you have a low credit score which includes various other aspects, you are not going to get loans from the banks.
History of Same Day Loans
The accounts of same day loans are not very old in the country. In the pre-globalization ages, people used to borrow money from the ‘Mahajans’ who used to lend money on the high rate of interest. These borrowers were not eligible to take loans from the banks and they used to depend on these lenders. In the modern days also, the banks follow their old age rules and regulations whereas the agencies that provide same day loans have modified their prerequisites so that the borrowers don’t have to go through any hassle.
The reason behind the popularity of the same day loans are their user-friendliness. The agencies that provide these loans go through very fast processing techniques so that the borrowers don’t have to wait for too much to get the money in their hands. The documentation process is often done online and that’s why it is way faster than the traditional one. The processing is hassle-free and the amount is disbursed very quickly within 24 hours. The agencies provide you easy payback options so that you don’t have to worry about it so much.
Agencies that Provide You Same Day Loans Online
While you apply for a loan the banks generally look for the credit score that combines many aspects of your financial health. Now, these same day Loanagencies approve your loans despite having low credit scores. Here are some agencies which provide you instant loans for your urgent need.
- Lending Club
It is one such agency that approves your loan application without much paperwork. They even give you loans if your credit score is as low as 600. The main thing they look into is whether you are having any history of lending money for at least 3 years and you have paid the EMI in time or not.
It also provides loans instantly if you are having a credit score of at least 580. You may take a loan if your yearly disposable income is not less than $12000 and your loan application gets granted within 24 hours. They also give loans to people who don’t have a history of taking loans.
It is another agency that provides you loans online and instantly if you are having a credit score of 600 to 650. Your loan amount can be up to Rs. 5 lakh.