Every day things happen beyond our control and not everyone has ample savings to cover emergency needs. The main waterline inside your house broke for example, or after the strong typhoon, your home namely the roof was badly damaged. In any case, repair for these basic home needs would cost much money and what you do when the amount you have saved for a rainy day is not enough to cover the amount needed for immediate repairs. One answer to this problem would be quick cash loans.
A fast online cash loan could be payday loans, installment loans, or cash advance loans. Payday loans or payday advance loans are the ones most associated with a quick cash loan. These types of loans are the most common choices in emergency situations since the approval of this kind of loan happens within an hour or less. In emergency situations, it benefits the borrower to have swift cash on hand.
Though these types of loans pay out swiftly, there are also drawbacks to the lender, for one high-interest rate if not advanced interest is imposed. This is due to very short terms, a single payment to the borrowers next pay date or two pay dates at the most. Another drawback with this type of loan is the loan amount, it is usually limited to your monthly income less interest, and anything larger than a person’s pay grade is considered by the lender as a financial risk.
The higher pay grade of the borrower the higher the loanable amount could be. Assurance to pay plays a big part in the approval of these types of loan. Unlike long-term instalment personal loans where only a portion of a borrower’s pay grade is considered appropriate for a certain number of months, but would likely to take three days to three weeks for approval, it is the urgency of the need that is charged with high interest.
But given the circumstances, it is still wise despite the urgency to compare lenders and loans, look for the best deal that you can find on short notice as to maximize the high-interest rate imposed by a quick cash loan like payday loans whatever you do it is still the value for the borrower’s money. Urgent or not better look at a number of lenders who can give you the lowest terms possible before checking out a cash loan.
Loan Companies can be divided into two categories banking and non-banking companies. Banking Corporations simply are organizations which can attach their names to the World Bank, while Non-Banking, Financial Companies are duly registered with their Central Banks cannot. While Non-Banking, Financial Companies can offer a wide array of financial products and services they cannot take in deposits except for Savings and Loans Associations which are also known as Thrifts. All of which offer loans and/or credit with an interest whose rate depends on the type of loan and loan company.
Commercial and investment banks are two examples of banking companies both offer loans with premium rates and other financial products and services. As these banks make loans that individuals and businesses can use for their daily operations, which in turn leads to more deposited funds that make their way to banks as it is the bank’s bread and butter. If banks, as loan companies can lend money at a higher interest rate than they have to pay for funds and operating costs, in which most of the time is the case, these types of loan companies make money.
Non-Banking Financial Corporations
Non-Banking Financial Corporations, in essence, are financial institutions that act as banks with a wide variety of financial products and services such as loans, credit and debt, retirement plans, and also investments. They don’t hold a banking license, though they are under banking laws, they can easily operate outside banking regulations. At times, because of those same reasons they can impose lower rates on the individual or corporate loans than their banking counterparts. They are not necessarily small or secondary companies, they could also be large corporations in direct completion with large asset laid banks.
In conclusion, there is not much difference between the two, in terms of being a loan company, both are guided by banking laws in terms of how they execute their terms, both handle individual and corporate, not to mention commercial accounts. Non-Banking Financial Corporations do not hold a banking license hence they can work outside the oversight of traditional banking regulations. It is actually based on the needs of the consumer on what or in what form of financial product the said consumer would need and the choices a banking or non-banking organization has to offer. In regards to the credibility, they are both in the same boat as there is also large-scale Non-Banking Financial Corporations are just as credible.
Flexible loans are loans that fit a person’s financial circumstance. While regular loans are paid on a fixed date and terms, and overpayments are charged with a certain fee. Flexible loans usually cater to those borrowers whose monthly salary differs. This type of loan has a fixed minimum which can be repaid by the borrower as is up to the full amount to close the said loan. This type of loan usually has a higher interest rate since the loan duration may not last its full contract had the borrower suddenly decided to pay the loan in full.
Another advantage for someone who has erratic monthly income is that borrowers can request a repayment holiday, in which payment is suspended short term but with continuously growing interest. Overall flexible loans are loans best suited for someone who has no fixed income, yet have the capacity to pay but not on a structured basis.
Fixed loans, on the other hand, are really not that different from their flexible counterparts. A fixed loan also has an exact interest rate, but which is actually lower than the one of a flexible loan and an exact date by which the monthly maturity should be paid thereof. But while a flexible loan could be paid in full at any time without the hassle of overpayment charges or suspended with running interest rates, a fixed loan has additional interest rates for overpayment and cannot be suspended. Another big difference is that a fixed loan cannot offer an additional amount to be taken out on the loan has been executed, it is a different story for a flexible loan.
A flexible loan can offer additional funds if the principal amount is not enough and the said additional amount will be bolted to the original loan amount with additional interest rates. There are some banks that even offer flexible loans over the internet for a maximum amount and only the amount that goes into that person’s account will be charged with interest and only the amount that has been taken will be charged to the borrower.
Basically, the difference of a fixed and flexible personal loan lies in the interest rate it can be said that both loans cater to two different sets of people structured specifically on the terms of payment or on how a person plans to repay his or her loan. On one hand a higher but steady interest rate but with a flexible timeframe in which repayment can be made and the other with a very strict time frame, with a basic, lower but erratic interest rate. It will generally be up to the borrower to choose based on that person’s age, income and credit rating.
Even with bad credit, it is not impossible to acquire a loan. Although it could just be like trying to find a needle in a haystack. There is still that possibility that there is a creditor that would be willing to offer loans for people with bad credit. Unless three to seven years have passed since a bad credit, the line has closed, chances are banks and other financial institution having red inked that credit line, divine intervention is not really necessary, although in some cases, it actually is needed depending on the severity of bad credit history.
Bank-based creditors will always turn down a person with a long history of bad credit, one solution would be to approach non-banking financial institutions or independent creditors. Bad credit or otherwise, approval for a loan is more likely, the off chance that one will be turned down is very slim, only there are some conditions this kind of loans and creditors. One of these conditions could be the collateral of even more value than the loan itself, as to let the borrower think twice before letting the loan contract go stale. Another would be higher interest rates for the same reason, is the loan really needed or worth it with those kinds of rates.
Like collateral, cash deposits for loans could also help the borrower’s chances acquiring a loan. Putting up a certain amount could guarantee a creditor that you are willing to pay debts as soon as possible, it would be more likely that a person applying for credit does not have much cash to put up as a guarantee for a loan as this could be the last option, in applying for a loan with banking or non-banking creditors.
Closing all credit accounts may also help in acquiring a loan as credit builds a person’s reputation to pay bad credit demeans that reasoning and if all bad credit is closed, there still would be a chance that creditors might consider someone who has history apply for credit.
To conclude, a bad credit line is not the end of the world for borrowers. There still is a chance that a person could still procure a loan, but still, it depends on the severity of the bad credit. Although possible, it would be better not to let things get out of hand. As a borrower, it is a person’s responsibility to check and double check before checking out a loan that a borrower’s obligation to know if it is in his or her capabilities to pay back his or her loans.
Flexible loans are usually provided by a conventional loan company such as a bank and this type of financial assistance can be structured in various ways, usually to the satisfaction of both the lending company and the borrower.
One example on the flexibility of a loan is by allowing the disbursement of a single payment but at the same time allowing the borrower to get more money in the future provided they have paid back a sizable amount of the loan amount.
Some personal loan licensed money lenders Singapore would give borrowers a ceiling and just allow them to withdraw from it, if and when they need it. A flexible loan in Singapore is a type of a bank loan (if availed from a conventional bank) or personal loan that requires regular payments.
Any late payments will incur surcharges and other fees agreed upon by the two parties, but in severe cases, the lender or the banking institution that provided the financial help may choose to freeze the existing loan and to no longer allow any changes or amendment on the existing loan until full payment for the obligation have been settled.
Generally, flexible loans are types of loans that do not have a specific amount of cash or denomination to be released to the borrower.
It does not have a defined value, allowing the borrower to define the amount that he may need depending on his or her current financial requirements. The application and approval of the loan are quite simple and that is to just fill out a loan application, file the same along with the required documents and wait for the final approval of the loan.
A very useful application for a flexible loan is when individuals do not know exactly how much money they would need. This is usually because the funds are to be used to remodel a house or to augment business expense wherein the financial needs are quite erratic and not exact.
The beauty of the flexible loans is that they give borrowers a chance to get the money that they need without incurring additional debt but this is only as long as the borrower is consistent and religious in meeting repayment terms.
Although, applying for this loan may be fast, easy and its flexibility quite beneficial to the borrower, lending companies that provide this type of loans normally requires the loan applicant to have a good and preferably an excellent credit rating or score to qualify.