Banks, financial institutions, and credit unions offer instant approval loans as a quick cash fix alternative. The loans are a short-term debt obligation generally issued for a maximum repayment period of 6 to 12 months depending on the nature of the monetary transaction and inherent terms of the debt.
It can be difficult to maintain cash liquidity in today’s financial scenario as people don’t operate with a favorable income-expense ratio, often finding themselves drowning in mountains of debt. The lack of cash liquidity forces a borrower to opt for instant approval loans as a short-term alternative to make purchases and render services.
However, the loan only creates another debt obligation with a shorter repayment period and a higher rate of interest. Instant approval loans prove to be useful for medical emergencies as your insurance policy might not cover all expenses. True to its name, most banks and financial institutions process instant approval loans within a period of 24 hours.
Factors to consider before availing instant approval loans
Understand the terms and conditions
Instant approval loans, alternatively known as quick loans, will have strict terms and conditions when it comes to the repayment schedule, the rate of interest and processing fees to initiate monetary transactions.
Borrow with caution
Instant approval loans are easily available. You don’t have to go through an elaborate application and approval process to avail one. However, on the downside, the availability of options might put you into the habit of borrowing constantly. In the short term, this loan might seem to you like a quick and easy fix for everything. You will, however, end up paying more than your borrowings owing to a high rate of interest and quick repayment schedules. Always remember there are alternatives that you can consider with fewer financial repercussions.
Not beneficial in the long run
Instant approval loans are unsecured debt obligations. Note that borrowing unsecured funds will affect your credit and loan borrowing capacity. If you want to avail additional debt for purchasing a home or vehicle for that matter, your loan capacity will be diminished due to the EMIs already being paid for instant approval loans. The value of monthly installments will diminish depending on your current payments for the quick loans until it has been fully repaid.
Instant approval loans for individuals
A personal loan is one of the popular types of instant approval loans you can avail within a day or two. The minimum qualification criteria to avail instant loans include the following:
- You must be employed full time
- Salary must be deposited in the concerned bank from where you plan to avail an instant loan
- In other cases, you must have sufficient cash deposits
There are many instant approval loans you can avail from banks and financial institutions that offer short-term credit. Your credit card can also get you instant approval loans and same day personal loans from a bank or even your nearest ATM in the form of cash advances. Note that cash advances are quite expensive owing to cash advance fees, ATM fees, Bank fees, and a high rate of interest applicable for the loan.
You can borrow quick cash loans from Avant, Best Egg, Discover, LendingPoint, LightStream, Marcus, Mariner Finance, OneMain Financial, RocketLoans, and Upstart. These loans carry high APRs and will take a day or two to be approved for fund transfer.
Instant approval loans for businesses
Instant approval loans are not just reserved for personal loans and individual debt obligations. Businesses can also avail quick cash loans for entrepreneurs to inject fresh funds into the cash flow to allow for sufficient liquidity.
You may think conventional business loans feature a low rate of interest and favorable terms and conditions making it a better option. However, the application and underwriting process can take several weeks and even months. Instant approval loans for businesses are very handy in such cases to fund a new piece of machinery or fund repairs and maintenance.
A list of popular instant approval loans for businesses
Avail attractive quick cash small business loans to purchase equipment, hire new employees, to consolidate debt, and expand your business.
Kabbage offers instant approval loans that you can qualify for within a matter of minutes for up to $250,000 line of credit with a repayment tenure of 6 and 12 months.
You can avail funds with flexible payment options from Fundbox. There is no personal credit check required to get you started with funds that will be ready for transfer within a working business day after approval.
OnDeck offers flexible financing options with term loans and lines of credit of up to $500,000 and $100,000 respectively. Simply apply online, evaluate your application, and expect a fund transfer into your account within one working day.
Among fast cash options for small business loans, LendingClub offers some of the best terms and conditions with loans up to $300,000 offered at a fixed rate interest.