Finance is an important factor in every person’s life. Every big venture be buying a car, starting a business or getting married requires money. To help in achieving and fulfilling all these goals and wishes financial institutions offer various types of loans to interested individuals. There are many types of loans depending upon the needs and repayment abilities of the person willing to take the loan. One of the important types of loan offered by financial institutions is cash advance loans. This loan is specially designed for short term purposes. In this type of loan, less money is lent to the borrower. This amount is in the range of $100 to $1000. Hence this loan cannot be used for heavy debt payment or other big reasons. This loan is specifically for unexpected emergencies. This type of loan has many other names like short-term loans, fast loans or payday loans. The repayment time in this loan is of about 2 weeks. Quick access to a short amount is provided in this loan type.
There are certain requirements for the borrower to be eligible to get this loan. These may vary from one financial institution to another. Basic requirements are as follows:
- The candidate must be of 18 years or above. The minimum age requirement is 18.
- The candidate must be employed. This increases trust of the lender for repayment of the loan amount.
- The candidate applying for the loan must have an active bank account.
There may be other requirements of the financial institution. Meeting these requirements makes a candidate more likely to get a loan. The amount of loan to be granted is determined by the bank on the basis of your income and cause of loan. You can request for a specific for a specific amount. The institution decides the final amount to be granted. To get a loan, one must fill a form online or in the institution and submit it along with the essential documents. It is a common practice for the institution to run some background check in order to understand the financial capacity of the borrower. This helps the financial institution to make a decision about granting the loan. Background check includes several things like cash in a bank account, cash in credit card and many others. It is your final decision to accept or reject a loan.
Cash advance loan is due to pay on the next payday. This is the reason why it is called payday loan. You repay the loan with the amount you get as your payment. Institutions also allow extension of repayment. This additional time comes with some extra money that you pay during the repayment. Financial institutions vary in renewal policies. Once you have completed the paperwork and loan is passed, you get the money immediately. Hence this method is best suited for immediate cash of small amount. It is advisable to check these policies before accepting a cash advance loan. One must thoroughly read and understand the terms and conditions to avoid any regrets later.