In this article, we will review the advantages of 1-hour payday loans and why they can be a more profitable solution to solve emergency financial difficulties.
The history of microloans goes back to 1974. The first quick cash loans were given to the poorest people, for example, to purchase means of production. Thanks to borrowed funds, they were able to open up their small business and thereby improve their financial situation. Today, online loans have become an alternative to bank loans. In 2016 the experts recorded an increase in the micro-crediting market by 36.9% compared to 2015. According to approximate estimates, today the country has issued microloans worth about 85.5 million. The popularity of same day cash loans was gained due to a number of important advantages
Most online lenders provide loans for small amounts, usually not exceeding $1000. Another feature of online cash loans is that interest is accrued for each day of use of borrowed funds.
Advantages of payday loans online
1. The convenient process of application.
Many microfinance organizations do not require a personal presence of the client during the registration of a loan – the whole process is online. All that the borrower needs is to go to the website of the lender, register in the system, fill out the application and send it for consideration. This can be done at any convenient time, for example on a day off, in the evening. For comparison, banks require a personal presence of the borrower to issue a loan.
2. The high speed of registration
One of the main advantages of a cash loan is that it can be approved very quickly due to the automatic system and the improved mechanisms of credit scoring. Many lenders review applications in just 10 to 15 minutes, and if there is no need for additional checks, they instantly transfer funds to the borrower’s account. Banks review applications longer for several reasons. First, they carefully check the credit history, and get information from the credit history bureau – this can take up to several days. In addition, banks ask to provide copies of documents in paper form.
3. A large number of loan options
Today, online lenders allow you to get a cash loan on a bank card, through electronic payment systems, on a bank account. Thus, the borrower can choose the fastest and most convenient option.
4. Minimum set of documents
Banks require a large package of documents from potential borrowers, including a copy of the work record book, a certificate of income, driver’s license, etc. In online organizations, the borrower simply needs to provide SSN number and a driver’s license number to get a microloan. This allows getting funds without official employment.
5. No collateral and no guarantors
Using online lenders, the borrower can be sure that he will not be asked to deposit a collateral or find a guarantor who will be able to repay the debt if the borrower for some reason cannot do it.
6. The possibility of a loan extending
Most microfinance organizations allow borrowers to extend loan repayment periods in case of unforeseen circumstances. However, using this service, you need to carefully study the conditions of online crediting. Some online lenders increase interest rates, while others allow a loan extension only if the borrower has not yet made a payment to repay the debt. In any case, it is better to extend the loan repayment period than to allow the delay, which may entail fines.
7. Bonus programs
Most microfinance institutions offer regular customers bonus programs with more favorable lending terms. In particular, regular customers can expect a reduced interest rate, a larger loan amount and a longer repayment period. Some online lenders issue an interest-free loan for a small amount to new customers, which is also very profitable. They give the right to repay interest on the loan, extend the repayment period or move to a new, more profitable level of the loan.
Prospects
Today, the microcredit market is actively developing. This is confirmed by recent innovations – at the beginning of this year, two major mobile operators began to cooperate with microfinance organizations. Now borrowers have the opportunity to get cash loans with no credit check on a phone or bank card. Thus, online loans are becoming more convenient, accessible and quicker every day!