Same Day Loans – Here’s What You Need to Know
Financial emergencies are urgent and demand a quick fix. Therefore, you need to act fast before the emergency becomes a disaster. A same day loan is the quick fix you need in case of financial emergencies.
What Is a Same Day Loan?
A same day loan is exactly what it sounds like; a loan that gives you the funds you need on the same day you apply. These types of loans are usually taken when the need for money is urgent. Same day loans give you the money needed to cover urgent expenses like car repairs, home repair, medical bills, etc. These loans usually carry high-interest rates and are approved for a relatively short period of time.
When to Use Same Day Loans?
A same day cash loans are ideal for unexpected life events and in the following situations:
- When you need instant cash
- When you have a medical emergency
- When your vehicle or home needs urgent repair
- When you don’t want to borrow money from family and friends
- When you don’t want to use your credit card or make credit card cash advance
How to Apply for Same Day Loans?
- Compare Loan Offers:
Before you apply for a same day loan, ensure that you have the best offer. For that, you may want to compare various loan offers from different lenders and then make an informed decision
- Check the Eligibility Criteria:
Make sure that you meet the chosen lender’s criteria to qualify to apply for a same day loan before you actually apply for it.
- Submit the Application:
If you are applying online, go to the official website of the lender or download the app, fill the loan application form with the required details, submit the required documents and send in your application.
Same Day Loan Eligibility Criteria
You need to meet the following eligibility criteria for same day loan:
- A resident of India
- A steady income of at least ₹30,000
- Age of 21 years or above
- A valid phone number and/or an email ID
- Work experience of at least 2 years
Documents Required for Same Day Loans
The following documents are generally required for same day personal loans:
- Identity proof
- Address proof (Aadhaar card, electricity bill, telephone bill, driving license, or voter card)
- Income proof issued by your employer
- Bank statements of the last 3 months
- Salary slips of the last 3 months
- Any other documents requested by the lender
Features and Benefits of Same Day Loan
- Same day access to funds
This addresses the time factor and helps you to use the money for the purpose it is intended for.
- Less paperwork and minimum documentation
This speeds up the loan process as you don’t need to waste your time arranging for the documents and then go through a lengthy loan application process.
- Best for emergency financial requirements
The same day personal loan is designed for instant access to funds when you need it the most – in emergencies.
- Suitable for borrowing small amounts
This feature is helpful when your money need is small and temporary but urgent.
- No collateral
This type of loan is unsecured, and you do not have to pledge collateral to get the loan.
How Do Same Day Loans Work?
Same day loans are unsecured personal loans that are approved and disbursed within a few hours or within 24 hrs. Some lenders also disburse same day loan within a few seconds. Keep in mind, some same day loans may take longer than you expect and are typically subject to the lender’s policies. Getting a same day loan generally involves these steps:
- Submit the application.
- Your application is reviewed. If it’s a preapproved loan, this step is skipped.
- The approval status is intimated almost immediately.
- If approved, final verification is done where documents are verified.
- Once documents are verified, the loan amount is released.
- The loan repayment tenure is flexible and can be from 7 days to 5 years.
- The repayments are in EMIs, just like in traditional personal loans.
Same day Loans vs. Payday Loans
While same day loans and payday loans are both similar financial products designed for quick financial fixes, they are extremely different in nature. The concept of a payday loan is that it should last until the next payday. Additionally, payday loans have very high-interest rates and origination fees.
On the other hand, the concept of same day loan is based on fast funding, however small the amount may be. The interest rates on these types of loans are generally lower than payday loans.
Alternative to Same Day Loan
An alternative to same day loan is a personal line of credit. It’s an open-ended, revolving credit line that offers you a pre-set amount of money. You can borrow as much as you want, as many times as you want from this credit line. The best part is that the interest is applied only on the amount you borrow and not on the entire credit limit approved.
The personal credit line stays with you for life and can come in handy whenever you come across financial emergencies. As you repay your borrowed amount, the personal line of credit replenishes.
MoneyTap’s Personal Line Of Credit as a Same Day Loan
MoneyTap’ line of credit is an excellent alternative to same day loan. It approves the credit line in the fastest time possible. When it comes to approval, we don’t just look at your credit score. We look at the bigger picture and use cutting-edge technology to approve loans online within a few minutes.
When you apply through us, you can instantly borrow up to ₹5 Lakh. You can withdraw as little as ₹3000 or as high as your approved credit limit to take care of expenses as and when you need.
MoneyTap considers your personal situation and your repayment capacity to offer a flexible repayment tenure, ranging from 2 months to 36 months.