Obtaining a small loan online is a fairly common thing for people to do these days, especially if they are not likely to be approved for a loan from their bank or building society because they have not such great credit and/or are a tenant rather than a homeowner and therefore do not qualify for a secured loan either.
Most of these online loans are issues in fairly small amounts and although there are a number of different companies that offer a number of different kinds of loans they all tend to have one thing in common – the loans they issue are most often same day loans, and are funded in as little as 24 hours or less.
How Quick is Quick?
Normally if people are concerned about how quickly a loan can be funded it is because they have a pressing financial need. Some people need to pay a bill that just won’t wait until they get paid again, others have an emergency like a car repair that has to be made and some people seek the same day loan to avoid bouncing a cheque and incurring all of those fees and penalties.
Bank fees can be huge on a bounced cheque if you don’t have an overdraft agreement in place, so often taking out the same day loan to cover the cheque is actually cheaper than dealing with the bank’s fees.
How quickly the same day loan is funded after it is approved varies from lender to lender. Some will say they will have your loan funds deposited into your bank account within 24 hours while others will transfer the money in as little as 15 minutes if you apply at the right time of day.
Same Day Loans and Your Bank
The one thing that you do have to bear in mind when you are trying to determine just how quickly you will be able to access loan funds from a same day loans broker are your bank’s own policies.
Loan funds are transferred electronically and while they do not have to “clear” in the same way that a check would your bank may not make them available immediately. Therefore you should check what your bank’s payment posting policies are before you make a decision between lenders based on how quickly your loan is funded.
Your same day loan will also only be funded of course after it has been approved. Approval time also varies from lender to lender although it is usually just a few hours at most.
Quick is Not Everything
When you are comparing the different loan offerings from various lenders the speed of loan funding should really not be your biggest consideration. Most same day loans come with a high rate of interest attached to them and it is that you should consider first when trying to decide which lender to apply for a loan with.
These loans are also usually made only to people who can prove that they have a steady source of employment income and who will agree to have the lender charge the scheduled repayments to their bank debit card automatically on the agreed repayment days.
This also minimizes the lender’s risk by ensuring that a borrower does not forget to pay, or a cheque gets lost in the post and allows them to be confident enough in your ability to repay the loan that they are willing to issue it on the same day. Therefore, you will need to have an active bank account to get the same day loan at all. It does not really matter what type, or with which bank, but it must be an account that can process ACH debits and credits.
Many online same day loans companies have calculators displayed on their websites that let you find out just how much a certain loan will cost you to pay back before you apply. To help make sure you are getting the best deal possible you might want to try several of these calculators to find out who is offering you the best rate and the best repayment terms on the loan amount you are seeking as well as the time you want to be able to take to pay the loan back.
It is very important that you be realistic about just when you will be able to afford to pay your same day loan back. Most lenders will give you between 30 and 50 days to pay (some even more) but if you pay back your loan earlier you may get a credit or a discount. On the other hand, if you take too long to pay the loan back you will end up incurring fees and interest charges that you had probably not budgeted for.