Instant Loan facilitates people to meet their cash requirement on urgent basis. In the UK, instant loans are short-term loans that gratify urgent cash needs like medical emergencies or utility bills. The repayment terms and interest rates on instant loans depend on the amount you desire to take as a loan.
As a matter of fact, a loan for many purposes can be acquired instantly depending on the borrower’s financial situation. These loans range from instant cash to instant car and homeowner loans. Since many offer online application process and approval, results of such applications can be seen within a matter of minutes. Online application and approval makes it even more convenient to get an instant loan as one can apply for and get an instant loan from the comfort of his home. The prospective borrower is usually under no obligation and the lenders promise confidentiality.
We are clear by now that these loans provide a means for obtaining cash immediately for a number of reasons ranging from medical emergencies to car purchases.
Common Names Of Instant Loan
Different lenders have given different names to instant loans. Some of the terms are:
short-term cash loans
fast payday loans.
The amount of cash a borrower can borrow with an instant loan range from £40 to £1000. You can be lucky enough to obtain a loan as high as £1500 if the lender agrees to it. The annual percentage rate (APR) ranges from 5.9 percent variable to 17 percent. Some lenders may lend up to 25,000 pounds but may demand collateral or security.
Instant Loan Terms
As the loan terms are short, instant loan is presented at high interest rate. The lender will strive to cover the lending cost by lending the loan at a high rate of interest in order to reduce the risk involved.
Loan terms of an instant loan generally differ from 14 to 18 days. Lenders may expand the loan term determined by the borrower’s demand. Instant loans are presented without a credit check so you do not need to worry even if you have a bad credit score.
UK Instant Loans Repayment Method
The repayment procedure of the instant loan is trouble-free. The instant loan provider will unswervingly take out the money from borrower’s bank account. Few lenders make it mandatory for borrowers to put a post-dated cheque of the repayment amount. Also, some lenders may charge an early repayment fee making it necessary for the borrower to be fully familiar with the terms and conditions of the loan.
Keep in mind; aim to pay back the loan as soon as possible, before you get into an additional debt trap.