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Be Cautious While Taking Instant Emergency Loans

Loans have become the part of life now a days whether we look in personal or professional financial requirements. The person might be rich or poor the needs go on increasing at the same pace. But still it has been seen that there are times when we see our self in the financial crisis. This issue is largely faced by a fixed monthly income based people. For example, an urgent requirement in the middle of the month gives rise to high financial outflow. To overcome the problem, we have a new concept named as Instant Emergency Loans.

Instant Loans are the easily available loan within a day. And if applied online you can get the cash in your account within few hours. You can anytime apply for this loan without telling the actual reason for requirement. The loan is to to be repaid normally within 14-30 days. It is based on the format that it is to be repaid when your next salary comes. So, it is also known as payday loan.

ALSO READ : Short Term Loans – Monetary Help To Meet Short Term Financial Gaps

This type of loans started from developed countries like UK etc. Now they are gaining popularity in developing countries like India also. But you should be well aware about the pros and cons of it. Some of these are mentioned below. But you should go through the specific terms and condition of the lender who is actually giving you the money.

Requirements of Instant Loans/ Emergency Loans:

  1. You must be above an age of 18 years.
  2. You must be constant or regular salary earner (though the minimum limit vary for different banks, institutions and countries).
  3. Many lenders ask you to submit the post dated check, so that the money is paid back as soon as you receive your salary.
  4. You must have a bank account whose details needs to be submitted.

Emergency Loans

Advantages of Instant Loans/ Emergency Loans:

  1. The cash is readily available at the time of requirement.
  2. There is no credit check while the loan transferred. So, even if you have a bad credit record, you can easily get the loan.
  3. The amount is easily and fast transferred to your account.

Disadvantages of Instant Loans/ Emergency Loans:

  1. The rate of interest is very high. So, the instant loans should only be taken in case of real emergency. Otherwise in the long run, they might effect your financial budget and end up into financial deficit.
  2. Generally we have to approach some person for loan who further passes our request to various others. And there might be a situation when it is not safe to give your personal details to random people.

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