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About Same Day Loans
Whenever there is urgent need of cash, one needs instant credit. Regular loans take at least 2 or 3 days to be processed and some kind of documentation needs to be provided. Same day loans are the solution for this kind of situation. It is an unsecured type of loan wherein funds are credited into account on the very same day. A short-term loan, it is very useful when you are in dire need of money and do not want to go through the entire process of documentation. There is no waiting period and hence, borrowers find same day loans to be very convenient.Same day loans can be considered as a type of personal loan but with instant credit of money. Credit checks are not carried out for this type of loan. However, same day loans attract very high rate of interest. It is useful for those individuals who do not want to borrow cash or undergo credit checks or use credit card to pull out money.
Purpose of Same Day Loans
The main purpose of same day loans is to fulfil immediate financial need or a short-term requirement. This loan is used to meet the expenses of every day activities such car repairs, medical bills, small repairs in the house and so on. Because of the nature of the loan and its use, lenders do not check the credit history of the applicant. More often than not, same day loans are not part of the formal lending structure of the financial system.Eligibility Criteria for Same Day Loans
The general rules for being eligible for same day loans are:
- Minimum age of 18 years
- Source of steady income
- Savings account that is operational
- Contact details like phone number/email ID
- Resident of the country where the loan is applied for
Benefits of Same Day Loans
Same day loans serve the quick need for money. Hence it is becoming increasingly popular despite high interest rates. Some of the benefits of this type of loan are:
- Elaborate documentation is not required like normal loans
- It is an unsecured loan and hence guarantee is not required
- Immediate transfer of funds within the same day of application
- Meets short-term needs immediately and repayment is to be done within a short period of time.
- Creditworthiness of the applicant is not generally checked. Hence, someone with a bad credit history can also apply for this loan.
- It can be applied online as well.
- Both existing and non-existing customers can apply for this loan with the lender.
Document Required for Same Day Loans
Depending from lender to lender, the following documents are generally requested for same day loans:
- Application form duly filled in
- ID Proof
- Address Proof
- Proof of income
- Additional documents as requested by the lender
Same Day Loans in India
Same day loans are slowly taking off in our county. HDFC Bank was the first lender to offer this loan in India. They have been able to capture many loan requests with this loan product. Such loans are claimed to be approved under one minute. This is available only for salaried professionals and who have existing savings account with the bank. In such cases, the bank has access to the applicant’s bank transactions and financial history. This helps in fast approval of such funds. Citibank also offers quick personal loans but the turnaround time is at least 48 hours. While it helps in immediate financial requirements, these loans come with high rate of interest. Hence, it is advisable to pay off the loan within the shortest possible period of time. Else it becomes very expensive and increases the outflow from your pocket.
The same day loan application process is quite simple. One can apply online or walk into a bank or even place a query through phone banking. Once your personal details are taken by the lender, a quick approval is given and funds are transferred to your bank account on the same day. Some basic documents are requested by the lender which will need to be submitted on the same day itself. The loan amount eligibility is determined by the lender on the basis of your application details and repayment capacity. Therefore, same day loans can be very useful in meeting urgent needs.FAQs: Same Day Loans
1. Are same day loans available for the unemployed?
Some banks/lenders offer a special deal for the unemployed to avail same day loans. The terms and conditions may differ from those of regular income earners.
2. How important is the applicant’s credit history while applying for this loan?
Normally, credit check is not done when applying for a same day loan. Even if the applicant has a bad credit history, the loan amounts are so small that with high rate of interest, it only becomes more of a burden to the applicant to not repay the loan amount. Hence, in most of the cases, the repayment happens within a short period of time. The lender however has the right to cap the loan amount on the basis of a bad credit history.
3. Is there a guarantee required to be provided?
Same day loans are unsecured and hence, do not need any collateral as guarantee.
4. Can I take a huge amount of loan through same day loans?
One can apply for a huge amount of loan however, it is the discretion of the lender to offer that much amount. Since same day loans are rather expensive due to high rate of interest, for specific requirements, it is advised to apply for those loans instead of same day loans. This loan is best suited for small financial requirements and can be repaid within a short time.
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