Short term loans are apparently a new development in the banking scenario of the world. People are opting for these cash loans more than they prefer to use their credit cards, especially when the amount to be drawn is significantly large. However, little is known about what the loan is, what criteria has to be followed while drawing it, and whether or not it is of any use, given that you can always draw a considerable amount of money from a credit card. These and more pieces of information follow.
1. About Cash Loans
A cash loan is simply a loan that allows you a certain amount of extra money in a particularly bad month until your next pay check arrives and you are able to pay back. It can be an extremely useful little facility for new workers and part time working students who need reinforcements of money to get through their months.
2. Eligibility Criteria
The service can only be availed by citizens of the USA, who are either 18 years or older. Furthermore, they need to be enrolled in a job that pays at least a thousand dollars a month, so that we can be sure that they will be able to repay the loan they take. For transfer of the money, they need to have a savings bank account which accepts direct credit. For obvious reasons, they cannot be enrolled in the military to avail this feature.
The process is fast and simple. In most cases, the funds will be deposited into your account within a few hours’ time. However, if you’re unlucky, the transfer can take up to a day. By and large, we are able to promise that you will have full access to your loan amount within twenty four hours.
Yes. All transactions and documents dealt with online are done over encrypted servers and protected with VPN servers of utmost security.
5. Necessary documentation
You would need to prove that you’re a citizen of the country and your age, and to that end, your social security number would eliminate the need to produce documents on site. However, it is useful if you can provide us with a working bank account that accepts direct credit.
You do not usually have to pay money for the application process of the loan. In fact, you do not have to pay anything until the final consumer agreement has been duly signed. The loan agreement will clearly have written on it the amount of money you are required to pay the service.
7. Maximum Limit
The Amount of money you can borrow depends greatly on how much money you make per month. The sealing is usually at a quarter of the amount you make.
8. Repayment Details
You are not allowed to repay a cash loan in instalments. Only a single repayment transaction is allowed. Hence, you need to be sure that you have enough cash in your hands the next time your pay check arrives so you do not run the risk of incurring huge amounts of money in interests.
9. Collateral Security
Other than a confirmation that you have a job and earn more than a thousand dollars a month, there is no collateral security or guarantor required for the loan. However, this also means that you cannot draw more money than the reserve bank sealing for non-collateral loans.
10. Frequency of Transactions
You can draw money as many times as you like. However, when drawing multiple times in a single month, a loan company will make sure that the net amount of money drawn is no more than the sealing.
Renée is a banking professional based in Princeton and has been an authority on various types of loans and their details. Here, she gives you a detailed explanation on short term cash loans.