Pros and Cons of Instant Loans

When you urgently need money, and your financial resources are not enough, the easiest way to get out of the situation is to get an online loan from a payday lender. Simple requirements for borrowers, transparent transaction conditions and confidentiality make them more convenient than banks and loans from friends. But microfinance organizations are not without drawbacks. Let us consider in more detail the positive and negative aspects of cooperation with them.

Pros of Fast Loans

One of the main advantages is a high percentage of approval of applications. A potential client should provide the following information:

  • passport;
  • valid bank card;
  • mobile number and mail.

Even unemployed, students and senior citizens have high chances to get an online loan.

Loans are issued remotely via the Internet. On the borrower's company website, you fill out a questionnaire, check the application status there, and the approved amount will be transferred directly to a bank card. If the borrower has no questions, it’s realistic to get money in 10-15 minutes, including the time to fill out the questionnaire. Some lending companies operate around the clock, so a loan will be transferred at any time. And with a repeated application, the loan is approved even faster. Agree, this is much more convenient than looking for free hours to visit the bank, adjusting to the work schedule of managers, sitting in queues.

Most lenders do not involve third parties in the operation. Not everyone wants a financial institution to call relatives, employers, and acquaintances to check on a client’s solvency. So, microfinance institutions are also more suitable for banks to maintain confidentiality.There will be no hidden commissions and payments, so the client can initially evaluate his debt obligations and decide whether they are suitable for him or not.

Main Conditions for Online Lending

Online lending services allow you to get money on the following conditions:

  • the amount from $100 to $1500;
  • period up to 30 days;
  • with the possibility of prolongation and early repayment of the loan;
  • anonymously.

Depending on the organization, the amount and terms of the loan may vary. For example, it is quite possible to find a company that will give a loan over $1500, as well as for longer periods.

Cons of Fast Loans

The main disadvantage of online lending is the high-interest rates. But since these loans are usually issued for a short period, the amount of the overpayment is not so big. Of course, if you need a large amount of money for a long period, it will be more profitable to contact the bank. Another way to reduce overpayments is to constantly contact the same organization. Bonuses and discounts for regular customers are in every service. Also try to repay the loan as quickly as possible, in most organizations interest is accrued only for the days of the actual use of the loan.


About author

Den

Den has a big experience in banking services, Forex trading and investments in securities.



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