Pros And Cons Of A Quick Small Loan
Pros Of A Quick Small Loan: Loans are the best solution available when you are short on cash. With different types of loans on offer, what makes a quick small loan the best option in such situations? Here are some of the pros of these quick-fix cash loans. Fast availability. Whenever there is a financial crisis and quick money is needed, small loans are a great solution, as they are made available immediately. They can be helpful in all conditions from being required for any personal need like paying your children's exam fees or dealing with any medical emergency or for any business initiative like buying urgent products, repaying outstanding debts on time and so on. Easy application process. An impressive aspect of a quick small loan is that it has a very easy application process. You only need to fill an application form that requires your name, date of birth, address, source of income and contact and bank details. The easiness of the process lies not only in the fact that the application form is simple but also in the fact that it can be filled online. Once the form is filled, the next step is to submit the required documents confirming your age, income and identity (photo, identity card, birth certificate, bank statement and paycheck) No hard and fast rules. The greatness of these loans lies in the fact that there are no hard and fast rules for them. Your credit history is never inspected while collaterals are not a requirement either which means that almost every application is approved if the applicant can prove his adulthood and salary as quoted in the application form.
Cons Of A Quick Small Loan: As roses have thorns and bullocks have horns, there are some drawbacks of a quick small loan as well. The primary disadvantages of these loans include the following. High interest rate. The main problem with these quick loans is that the interest rates at which they are offered are higher than normal long-term loans. Thus, at the end of the day, you end up paying far more than the principal amount that was borrowed. Short repayment window. Another con of fast Small Loan is that they are short-term deals that need to be repaid very quickly. Lending companies usually fix the borrower's next payday as the date when the amount must be returned. Being trapped in a vicious debt cycle. With a small time-period in which to return the money, most applicants fail to retain enough cash in their pockets to run their day-to-day affairs after returning it. Thus, they end up being trapped in a vicious debt cycle where they take a quick small loan to repay the outstanding amounts of the previous Quick Loan.
A Quick Small Loan: Useful Tips For Applying: Though a quick small loan poses a few risks, one can still not deny their usefulness in emergency conditions. Here are a few tips that can really help you as far as these Small Loan are concerned. Selecting the most convenient source. It is important to understand that due to very high level of competition amongst private lenders, you can actually find lenders who will be ready to offer you the loan at lower interest rates to gain an edge over the competition. Thus, with some exquisite research and a good market survey, you should be able to secure a quick small loan at a low interest rate and ensure that you don't pay a lot of extra cash to the lenders. Negotiating a longer repayment window. You can actually negotiate longer repayment schedules with companies by offering them monthly installments over a longer time than returning the loan in one go. For instance, if your income is $1500 and you are applying for a quick Small Loan of $1200 then its best to negotiate a two-month repayment schedule where you pay the Quick Loan back in two installments of $600 (plus the applicable interest rate) each rather than in a single installment of $1200 (plus the interest fee) on your next payday. This will ensure that a good chunk of your income remains intact to tackle daily financial needs and you don't need to ask for another Quick Loan to deal with the day-to-day expenses.