Instant Payday Loans Vs Traditional Loans

There are assumptions of many people that instant payday loans and traditional loans from financial companies are the same. For someone a traditional loan could be a life saver when one is in emergency need of money, but it does not take much long to become an additional trouble rather than a solution if it has been dealt by an inappropriate financial company. First of all, it is not that easy and requires aplenty of procedure to receive approval to obtain a regular loan. It is believed by many people that online payday loans or cash advances are the same. But the differences between online payday advances and typical credits are quite remarkable. Here are some of the important facts that differ between these two.

Easier Application Process and Fund Transfer with Instant Payday Loan

The application process is one of the major differences between these two types of loan. With a regular loan which is offered by the traditional banks or financial establishments requires a personal presence to submit an application for loan. But immediate payday loans can be applied online from anywhere by filling out the easy and simple loan application form and submitting required details online. Then the payday loan provider would get on to the application in same day. As instant cash advances are processed online they always gets a faster approval then a typical loan from traditional banks. A regular loan takes three to five working days to get an approval depending on the financial institution. The approval procedure may even take week to months depending on the amount of borrowing and terms of use of the lender. On the other hand, most of the times it takes less than 24 hours for receiving the approval with the online cash advances procedure. When the application form is appropriately filled in then the borrower just has to wait for the notification whether the application has got approved. Some loan providers even provide approval for online payday advances in less than an hour.

Flexible Eligibility Criteria with Online Payday Loan Approval

The possibilities of getting approved for online cash advance applications are always comparatively higher than the general type of credits. It is because while providing loan the lender takes only one fact in account to determine whether the borrower is eligible to receive loan, which is the capability of paying back to the lender. On the other hand regular loans always have the requirement of borrower’s good credit history, but to get approval for an instant cash advance one does not require possessing a good credit history. If the borrower is 18 years old with a steady income and has the capability to repay the amount of the loan then it is very likely the applicant would receive a quick approval on the application. The loan amount would be deposited directly to the borrower’s bank account after the loan has been approved.

Also the payment procedures are much easier with online cash advances compare to traditional loans. Most of the times, regular loans’ repayment procedure involves a personal presence at the bank or financial institution where the borrowers of instant payday advances can repay the loan amount online. Although the interest rate with this type of loan is rather high than traditional loans but with all the convenience and other benefits one can certainly overlook this issue.