Getting a loan quickly is the only way to be rescued from a precarious financial crisis when you are staring at huge gaps in personal finances. Needless to say that such requirement will be in much smaller amount than what you might need for buying a house or a car. This is what personal loans are made for. During such times you sincerely hope to get the money almost at the drop of a hat. The need is so intense that you are least concerned about how much it might cost you in terms of interest that has to be paid. The focus in on how quick you can get the loan.
The situation that has been described above is typical of modern day living that if fraught with sudden requirement of funds in daily life. In order to help people with quick money, financial companies have created special financial products that can cater to such requirements speedily and have named it personal loans. In order to meet with the expectations of customers in providing money almost as soon as it is requested, the lenders have made arrangements for personal online loans.
Loans for short term
Personal loans are not only of smaller sums but it is also of much shorter duration that other traditional loans. While a home loan can run into several years and a car loan could be paid back in 3to 5 years, personal loans have to be paid back in a few months. The loan is structured in a way to meet the immediate financial needs and since it is supposed to be used for a specific purpose of bridging the gap in finance, it is assumed to be paid back quickly. It is similar to a fire fighting arrangement that douses the flame and helps to avoid some disaster. The emphasis is on fighting the fire without caring for how much you have to pay for it. This is also the reason why interest rates are higher on personal loans.
Responding to the urgency for personal loans, many financial companies make it available online. From applications to disbursement, everything is done online. The procedure for applying for loans has been simplified as it requires only a few personal details without the need of elaborate documentation. In order to make it flexible so that maximum people can avail it, the eligibility criterion has been also simplified by de-linking it from the credit rating of loan applicants. Credit rating, though not completely ignored, does not affect the eligibility.
Faster processing through direct credit
Personal loans are processed very speedily and usually the money is credited to the applicants account within 24 hours. However, it can take maximum 72 hours for disbursement in exceptional circumstances. Direct credit ensures that there is no delay in availability of funds once it has been approved for disbursement.
The financial companies are licensed to offer personal loans that are truly free from hassles. The loans are granted without any security and have to be paid back in installments as agreed by the borrower.
Author bio – Charles Walker began his a career as an accountant. He always aspired to start up a financial company and by the dint of his entrepreneurial skills succeeded in setting up a company to help individuals plan their finances better. Today, he is looked upon as an authority in personal finance and keeps advising clients on personal online loans.