An instant personal loan is usually sought by people who are in need of money in a hurry. You might soon find, however, that you’re not exactly sure how to go about finding a lender who’s willing to offer you an instant personal loan; many loans can take days if not weeks to be approved.
That’s fine for matters that you can afford to wait on… if you’re already in dire need of the money, though, then an additional week or two can cause serious problems. Luckily, by taking a little bit of time to look at the various lenders in your area and considering a few different loan alternatives you’ll likely be able to find the instant personal loan that you need.
Instant Loans and Collateral
Generally, an instant personal loan will be a secured loan… there aren’t many lenders who are willing to offer an unsecured loan on the spot without much time to perform credit checks or verify information.
Instead, lenders who offer this type of loan generally either use large collateral items such as automotive titles or require that a personal cheque for the amount plus service fees be left as a deposit.
Instant personal loans are generally smaller loans, intended to be repaid within a matter of weeks instead of months or years, and as such are able to work effectively with these methods of collateral.
The vehicles used to secure these loans are often worth at least twice the loan amount, and the cheques written include all service charges and can be deposited by the lender if the individual hasn’t repaid the loan and picked up the cheque.
When looking for lenders for an instant personal loan, you might check with some of the lenders that you’re more used to such as banks and finance companies.
Many of these lenders aren’t as likely to give instant loans, however, so you might need to do some additional searching until you find lenders who specialize in payday advance loans and automotive title loans since these are both types of instant loans.
Additionally, these lenders may also be able to suggest other lenders in your area that offer the types of loans that you’re looking for.
Repaying the Loan
Obviously, repaying an instant personal loan should be a priority. Late fees are often much higher than they are with more traditional types of loans, and there is generally less time to elapse before the lender starts working toward collection.
The loan payments are often structured around your paydays, so there isn’t as much of a worry about the loan coming due while you’re still waiting to get paid. Even so, it’s important to remember that you’ll likely have other bills that need to be paid in addition to your loan payment so you need to budget your finances wisely to allow you to fulfill all of your obligations on time.
With the advent of online lending, a large number of instant personal loan specialists have started websites and now offer their loans online instead of in a physical location. This allows them to have a reduced overhead while still being able to serve a large number of people electronically.
The loan process works in much the same way that it does for physical lenders, but the money is deposited into your bank account electronically and is debited from the same account after the term of the loan has passed.