There’s no doubt that the financial market has evolved considerably since the last great recession, creating a myriad of lending options for people regardless of their personal circumstances.
However, the sheer wealth of options available to customers can be overwhelming, making it hard for you to make an informed decision that suits your exact circumstances and the precise amount of money that you need.
One of the most popular financial products to emerge during the last decade is the instant loan, which can be sourced online and approved in an incredibly short time-frame in most instances. This highlights the core difference between online loans and traditional alternatives, as the former is supplied from a direct lender without the need for an extended application process.
Of course, you can usually only secure small sum loans when applying online, but the fact remains that this is a simple and accessible way of accruing funds during a challenging financial period. We’ll explore the concept of instant online loans in further detail below, whilst appraising the unique benefits of this type of lending.
The Basics - How Quickly Could I Receive My Money?
Perhaps the most obvious benefit of applying for an instant loan online is the transaction speed, as this streamlined process can deliver funds quickly to your bank account at a time when you need them the most. This, coupled with the fact that there are no associated application or processing fees, creates a viable and customer-centric lending option that should appeal to anyone in need of quick cash!
With Payday Pixie, our simple application form takes just five minutes to complete, at which point you’ll be provided with instant (and relevant) results from a multitude of available lenders. These results will include formal loans offers that provide you with the amount you’ve requested, at which point you simply need to read through and sign the associated agreement before waiting for the cash to land in your bank.
OK, we hear you ask, but how long does it take for the money to reach my account? Well, so long as your application form is completed in full and you receive at least one offer from a lender, you can bank the value of your instant online loan within 15 minutes.
This can be even quicker in some instances (we’ll have a little more on this later), although in some cases it may take a little longer depending on your precise lender, the timing of your application and who you bank with.
In general terms, however, the rapid nature of instant loans makes them ideal for dealing with financial emergencies or those pesky unexpected bills. They also negate the need to complete detailed and time-consuming loan applications, which may require multiple forms of ID verification and a trip to your local bank or building society.
Of course, there are some important steps which help to ensure that your application is successful and approved as quickly as possible. To begin with, you’ll need to meet the following eligibility criteria:
● You’ll need to be a UK resident or at least boast full UK citizenship
● You must also be aged 18 years or older to apply for an instant loan online
● You’ll also need a valid UK bank account in which to receive your funds
It’s also important that you enter your personal information as accurately and as honestly as possible when applying for an instant loan, as this negates the needs for lenders to contact you and query the data supplied. After all, this can delay the application process unnecessarily, whilst in some instances it may even cause the lender to withdraw their offer.
We’d also recommend applying for an amount that can comfortably be repaid, as whilst you won’t necessarily be credit checked when trying to secure an instant loan, the lender may look to verify your income details run some basic affordability checks.
So long as you consider these steps and follow the directions on our site to the letter, you should be able to receive your online loan within a matter of minutes!
Does the Amount I Borrow Affect How Quickly I Receive My Funds?
The short answer to this question is no, primarily because lenders set limits on the amount that you can borrow depending on the nature of the loan and its duration.
Here at Payday Pixie, for example, we offer a maximum instant loan of £2,000 over a period of 90 days (or three months), with a fixed rate of interest and representative APR.
Whether you apply for an instant loan of £50 or £2,000 over a predetermined period of time, however, the sum or total amount repayable won’t impact on the time taken for you to receive the approved funds into your bank account.
However, there are factors that may delay the receipt of borrowed funds into your account. For example, times can vary depending on your bank’s precise policies and procedures, as some may take longer to process payments overnight or during the weekend.
This is why the timing of your application is important, and it may be worth checking your bank’s policies before proceeding. As we’ve already touched on, any inaccuracies or missing data fields in your application can also delay the process, as the lender may be required to make further contact to clarify specific details.
You can avoid this by being vigilant when completing your instant loan application online, of course, so don’t be afraid to take an extra couple of minutes to double check your personal and financial information.
If you’re still in any doubt at all, you can contact the team here at Pixie Payday and we’ll try to provide some much-needed clarity and transparency.
How much more will it cost me to get the money right away?
Historically, some lenders would guarantee an instant loan payment into your account by demanding a small processing fee in the form of a fixed percentage of the amount borrowed. This practice is largely frowned upon in the modern age, however, as being asked to pay any upfront fee when applying for a loan or alternative line of credit could be indicative of a scam or fraudulent behaviour.
In this respect, it shouldn’t cost you any additional fees to receive the funds from an instant loan, as most lenders will process transactions through their express cash transfer options within 15 minutes or less as standard practice.
The only exception to this rule may occur if your bank doesn’t support a lender’s express cash transfer platform, although this is relatively rare in the current marketplace.
In this case, you may have to pay a small processing fee in order to secure an instant payment, so keep this in mind and feel free to check with your bank before completing your application.
Even if you’re new to the world of borrowing, you may have heard the term ‘representative APR’. This is essentially a financial service concept in which any credit or loan interest rates advertised must take into account all charges associated with a particular product, in a bid to create transparency and help applicants to understand the precise amount to be repaid. In this respect, APR is unique as it can include fees in addition to annualised interest charges, offering borrowers a clear insight into their full liabilities as debtors.
Of course, representative APR is an annualised figure, so it may not be particularly relevant when taking out instant loans over a 90-day period (or less). In this case, lenders offer a representative example, which tells you the total amount that you can expect to repay in relation to the precise amount that you borrow.
For example, let’s say that you borrow £200 with a representative APR of 728.9%. If you borrow this over a brief period of 10 days, you’ll pay £9.89 at a fixed rate of interest on top of the initial sum you applied for.
This will create a total repayment of £209.89 at the end of your loan, inclusive of any fees or charges (although in this instance the transaction can be processed completely free of charge).
Of course, the total amount repayable will increase in instances where you borrow more over a longer period of time, and at Payday Pixie you can tailor the broad terms of your loan to suit your own unique circumstances. This certainly helps you to make an informed decision, and one that factors in the full amount that you’ll be required to pay as a result of your loan.
Understanding the representative APR and example is crucial for all borrowers, as this will ensure that you never enter into a loan agreement without fully understanding the precise amount to be repaid.
This way, you can calculate your monthly repayments and ensure that they’re manageable, whilst also making sure that you’re not borrowing more than you need to resolve your short-term financial issue.