The process of loan application could be lengthy, hectic and distressingly exhausting. Normally, you will require a lot of preparation and documentation before you get your loan request in the processing queue. Sometimes you may be in urgent need of money, or maybe you have a financial commitment that cannot wait until payday; hence you may be unable to go through the normal loan application process due to time constraints. At such a time, you may resort to an online loan with no guarantor, one that will serve your urgent needs without as many formalities.
Online loans may save your day for an urgent case. These loans are fast to access and they do not take much time before disbursement. Here are some basic features of such loans.
Most payday loan providers will not necessarily require you to visit their premises to sign up for a loan. Most applications are completed and reviewed online. Actually, the whole process may be done within a day and you can receive funds the same day.
You may need to secure the loan
Some loaners will ask you to secure the loan while others will not. Where security is applicable, you will need to provide proof of ownership of assets such as your car logbook or just proof of employment. All they need is proof that you can repay the loan; they do not necessarily request you to place assets in their custody.
They are short term solutions
Do not expect to get a payday loan repayable in six months or a year. Most of these loans are actually repaid in a fortnight or just a few weeks. For this reason, they’re recommended for emergencies, not for long-term purposes.
Higher interest rates
Most payday online loans have short repayment periods. It’s hence not surprising to find that their interest rates are a bit higher than those of normal loans. You may also incur some additional levies such as processing fees which are usually deducted from the disbursed amount.
These are the basic features of online loans with no guarantors. Depending on whom you borrow from, a few more terms and conditions may be inclusive.