This type of loan is an agreement between a lender and a borrower for a cash advance. In most cases the lender will charge interest on the initial loan value which the borrower will need to pay back on an agreed date. Generally, cash loans are unsecured meaning the lender has no security to back the loan. Unlike a secured loan or other type of money loan which is generally secured against a borrower’s house or car. The lender of a cash loan will therefore need to ensure that the borrower has the means to pay the loan back without causing themselves long term financial hardship. Cash loans can be more expensive than some other types of borrowing, but they are great for people who don't want to take out an overdraft with an ongoing fee, and those who don't have credit cards or who don't want to go through a laborious application process to get the credit limit increased.
The key benefit is that they are useful if someone has an unexpected cost or expense that they need to pay out for before they next get paid. Let’s say your car breaks down and you can’t afford to get it fixed or need money quickly for another emergency such as a new heating boiler or a broken appliance like a dishwasher or washing machine. This means you may not be able to get to work or live your normal life. An instant cash loan would be really helpful in this instance as it would mean you can get back on track with everyday living and avoid getting in trouble with the boss.
Such cash loans are also a really good way of paying for those one off expenses. We love to speak with customers who are planning their summer holidays with an instalment loan from us, spreading repayments out over several months is a great hassle free way of getting your summer vacation booked in time for the school holidays. The truth is there are many reasons customers choose this type of finance.
It’s worth remembering that you should only borrow the amount that you need. The more you borrow, the more you will have to pay back. More on this in a later section covering – can I afford the loan repayments.
The borrower will fill in an online application form which is then received by the lender in real-time. The lender will then run credit and affordability checks in the background to decide whether the loan is suitable. In some cases lenders including Fast Loan UK may give new customers a call to confirm a few details. We find this is helpful as it may speed up the loan application process in addition to keeping applicant informed of progress. It also enables us to start building personal, trusting relationships, as we want our customers to feel comfortable communicating with us.
Once the lender has all of the correct details and is satisfied that the borrower can afford to pay the loan back, they will then issue the borrower with a loan contract. This contract will need to be digitally signed by both parties before the lender will release funds.
Once the loan amount has been paid into the borrowers bank account automatic payments will be taken from the customers bank account on agreed repayment dates using a Continuous Payment Authority. Quite often, these can be monthly repayments.
If this all sounds complicated don’t worry. Fast Loan UK have made this process really simple as we take care of all the hard work in the background. We aim to provide instant cash loans to new customers within 25 minutes and just 10 minutes for existing ones.
At Fast Loan UK we make sure of it. We won’t lend unless we feel you receive enough income to pay all of your bills, plus our loan repayments and have money to spare. We don’t want our cash loans to become a burden on our customers and we wouldn’t sleep well at night if that was the case. Assuming these requirements are met, we also ensure you understand the full cost of the loan.
Our cash loans have been designed to be flexible around customer’s unique set of circumstances. Therefore, customers of Fast Loan UK can choose to pay back weekly, fortnightly, monthly or in one payment. This is how we keep our cash loans flexible and affordable. Typically these types of cash loans from conventional Lenders are also a much cheaper alternative than bank account overdraft fees, which can equate to mind boggling APR’S. For impartial information on borrowing including loan amounts, monthly repayments, interest rates etc please contact the moneyadviceservice.org.uk
This depends on how you use them. When any lender provides a line of credit to a borrower the information will be shared with Credit Reference Agencies (CRA's). If the borrower makes all their payments on time and settles their loans, then this will help boost the borrowers credit score.
How often you use these types of cash loans will also affect your credit rating, in the short term at least. If a lender can see that you have been taking multiple payday loans from several different lenders, then it shows them that you are unable to manage your bills. We would therefore advice you only take out cash loans if it’s a necessity, and you only use one lender.
It’s important to remember that there are 3 main CRA’s, and not one will have all of the borrowers previous credit history information. This is because lenders are not obliged by law to share all of their data with all of the CRA'S.
Representative example: Borrow: £500 over 7 months. 7 repayments of £113.43. Total amount payable £794. Interest rate: 292% pa (fixed). Representative 587.62% APR.