Loans Fiesta (Planning your finances effectively) Problem getting a Loan?
Home About Us FAQ's Articles Services Resources Contact Us
  Other Loans
Loans for Unemployed
Wedding Loans
Education Loans
Bridging Loans
Home Equity Loans
  Other Loans
Christmas loans
Loans for doctors
Best Secured Loans
Logbook Loans
Provident Loans
Country UK   USA
First Name*
Last Name*
Date Of Birth
Tel No*
Mobile No
Email
Address*
Postcode*
Purpose*
Loan Amount*
Status
I have read & accept the DPA Statement
We offers great plans for every budget
How to Apply?

Understanding the dynamics of Instant loans

By Andrew Baker

Before taking the decision to utilise an instant loan, decide what an instant loan actually means to you. Does it mean a loan that gets you money in a single day or is it simply a loan that is approved fast? Though they appear similar, they are not. These are two entirely different cases and depending on the case specifications, are offered to borrowers.

In the first case, the loan is approved quickly because of a special requirement of borrower. Borrowers, in a few cases require loan urgently. They may not have been able to maintain the desired gap between application and approval because of the uncertain nature of the expense for which the loan is needed. In spite of this, the borrower is given an instant loan, while the service charges are upped.

Next are instant loans where the loan provider accepts that it his responsibility to approve the loan application fast, so that the borrower can instantly utilise the loan amount sanctioned. In the former class of instant loans, the lure of an extra rate of interest works in order to facilitate a fast approval. The desire on the part of the loan provider to be efficient and effective creates the latter class of instant loans.

For the purpose of ease in recognition, we will refer to the first case of instant loans as fast loans and the second class of instant loans as instant loans itself.

In order to make the resources available within a day, the loan provider in case of fast loans skips several steps that are involved in the normal loan processing.
It must be acknowledged that there are a number of sub-processes that need to be carried out before processing the loan. Some of these like the credit check are necessary for determining the reliability of the borrower. The other set of processes, which includes property valuation (in case of secured loans only), is necessary for deciding the amount that a borrower will qualify for. Though these processes are time consuming, they are not superfluous. This explains the reason why fast loans carry a higher rate of interest. By diverting from the normal loan processes, the loan providers are creating a degree of risk involved.

For an acceleration of the process of approval of instant loans, the borrower need not spend any extra penny. It is purely out of the efficacy of the loan providers that the instant loan is made possible. This was the need of the time and a measure to reduce customer dissatisfaction, which led loan providers to redesign their working procedure to increase the pace of loans approval. Instant loans do not advocate an omission of important sub-processes. It requires the use of methods that increase the speed of approval while not putting the lent funds to danger by skipping important processes and sub-processes.

Online processing of loans is of special help in making instant loans possible. Online processing of loans does not simply mean using a computer for sorting and arranging data. It means accepting application through net at any time of the day and night. This also includes a response on the loan query that is easily forwarded to borrowers. Since work at some loan providers goes 24×7, borrowers are assured of help at times when they can least expect it. Multi-tasking or the ability to perform various sub-processes more than one at a time will also be helpful.

A special type of instant loan is payday loan, which are characteristically fast in approval. Borrowers who have emptied their monthly paycheque and need money to disburse an occasional or regular expense will use a payday loan. The amount involved in a payday loan is relatively less. The amount ranges from £80 to £500. A payday loan is so fast in approval that a borrower gets the amount immediately on the day following the application. The payday loan is credited directly into the bank account of the borrower. Cash advance loan and no fax payday loans are some of the classes of instant loans that are prevalent nowadays. A payday loan is lent out till the borrower receives his next paycheque. The paycheque serves as the collateral for the purpose. Borrowers may get an extension in the term of repayment of payday loans.

Given the highly unexpected nature of the expenses, borrowers will find instant loans really useful.

Summary
A borrower cannot predict the occurrence of an expense beforehand. Conventionally however, borrowers were expected to predict well and keep a minimum gap of one month between application and approval. The borrowers who could not were left with no choice except to get finance at excessively high rates of interest. Instant loans changed all this. This article explains how instant loans have brought about a change in the loans scenario. The article also states the various forms of instant loans that are available in the financial market nowadays.

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the personal loan web site
http://www.loansfiesta.co.uk for any type of uk secured loans and unsecured loan please visit
http://www.loansfiesta.co.uk

 
UK Loans

Loan Bedfordshire | Berkshire | Loan Buckinghamshire | Loan Cambridgeshire | Loan Cheshire | Loan Cornwall | Loan Cumberland | Loan Derbyshire | Loan Devon | Loan Dorset | Loan Durham | Loan Essex | Loan Hampshire | Loan Herefordshire | Loan Hertfordshire | Loan Huntingdonshire | Loan Kent | Loan Lancashire | Loan Leicestershire | Loan Lincolnshire | Loan Middlesex | Loan Norfolk | Loan Northamptonshire | Loan Northumberland | Loan Nottinghamshire | Loan Oxfordshire | Loan Rutland | Loan Shropshire | Loan Somerset | Loan Staffordshire | Suffolk | Loan Surrey | Loan Sussex | Loan Warwickshire | Loan Wiltshire | Loan Worcestershire | Loan Yorkshire | Loan Anglesey | Loan Brecknockshire | Loan Caernafonshire | Loan Carmarthenshire | Loan Cardiganshire | Loan Denbighshire | Loan Flintshire | Loan Glamorgan | Loan Merioneth | Loan Monmouthshire | Loan Montgomeryshire | Loan Pembrokeshire | Loan Radnorshire | Loan Aberdeenshire | Loan Angus | Loan Argyllshire | Loan Ayrshire | Loan Banffshire | Loan Berwickshire | Loan Buteshire | Loan Cromartyshire | Loan Caithness | Loan Clackmannanshire | Loan Dumfriesshire | Loan Dunbartonshire | Loan East Lothian | Loan Fife | Loan Vernesshire | Loan Kinross-Shire | Loan Kirkcudbrightshire | Loan Lanarkshire | Loan Midlothian | Loan Morayshire | Loan Nairnshire | Loan Orkney | Loan Peeblesshire | Loan Perthshire | Loan Renfrewshire | Loan Ross-shire | Loan Roxburghshire | Loan Selkirkshire | Loan Shetland | Loan Stirlingshire | Loan Sutherland | Loan West Lothian | Loan Wigtownshire

Visitors to this website are advised that loansfiesta DOES NOT deal in Mortgages or Remortgages. We only offer unsecured loans and secured loans (as second charge).

© copyright 2005-2006, Designed & Developed by loansfiesta.co.uk Terms & Conditions | Privacy Policy | Sitemap
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A
MORTGAGE OR ANY OTHER DEBT SECURED ON IT

A fee between 0% and 10% of the loan may be charged on some plans
depending on credit history and ability to prove income.
Example: Loan of £15,000: 120 monthly repayments of £204.66, 10.4%APR variable
Loans secured on residential property.