Many people who work menial jobs often find it difficult to make ends meet with their limited income. In many cases, your income might not last you the whole month. You might need more money in case of an emergency, such as an accident, or if you need to buy something urgently. However, getting a loan from a bank is quite difficult for people with limited incomes. In case of an emergency, your only option is to ask for financial assistance from your friends or family members, or visit a payday lender.
There are many companies that currently offer weekly instalment loans in the UK. In fact, taking a weekly loan is a significantly better option for people who just need a bit of money to tide themselves over until their next pay cheque arrives. A weekly loan is generally unsecured, which means that the company will charge a considerably higher interest rate. That’s because the company takes on significantly more risk when lending its money to borrowers with no security. However, these loans offer a series of benefits that you don’t get with ordinary bank loans.
In case of a financial emergency, you will need money as quickly as you can get it. Applying for a bank loan isn’t a wise idea. When you first file an application in a bank, the bank will take at least a week to process it. Once your application has been processed, the bank will decide whether to grant you a loan. If the bank decides to grant the loan, it will ask you a series of questions for verification purposes, and will also carry out background checks. All this can take up to two weeks. After that, the bank will credit your account with the loan amount.
However, if you were to apply for a weekly loan from a private lender, you can easily get your hands on the money within one business day. The application process is considerably faster; you can easily fill out the application online. The company will verify the application and process the loan amount within a few hours. You can choose from different loan plans that are spread over a period of 12-36 months. Most private lenders charge interest on a monthly basis, so you won’t be penalised if you opted for an early settlement.
Relaxed Eligibility Criteria
Most banks have very strict criteria for granting loans to customers. However, if you are applying through a private lender, it will be much easier for you to get the loan amount approved. That’s because private lenders generally have relatively relaxed criteria. They offset the greater risk by charging a significantly higher interest rate. You can discuss the particulars of the loan plan with the company before deciding whether it’s the right choice. It’s important for you to go through the terms and conditions before you sign on the dotted line. Make sure you read about the interest rates and other particulars before you apply for the loan.