Cash loans are a short-term financing received by the borrower in cash by the lender. It is the easiest and quickest way of borrowing extra cash in Canada. Whether you need to fix up your car urgently, have utility bills to pay off, or have small unexpected bills to deal with, cash loans in Canada are an appropriate solution. These loans will let you get quick cash in hands with no hassle at all. This is why in no time these loans became so popular among salaried individuals of Canada.
How Does A Cash Loan Work?
This short-term loan is expected to be repaid before the borrower’s next payday. This is the fastest option available for the borrower to handle unexpected financial emergency with ease. You will need to have a valid bank account, a regular employment proof and a legal age of eighteen years along with permanent Canadian citizenship to apply for the loan.
How To Get A Small Loan?Here is the detailed process to get a small loan:
- Complete a short term loan application online
- Once your loan application is complete, the lending decision will be taken by the lender within minutes.
- An online loan agreement will be signed
- The desired loan amount will be directly credited to borrower’s account
- Repay over time.
What To Look At When Getting A Cash Loan?
At Payday Tree, you will find an easiest option of getting suitable financing in Canada. We have done a proper research work for you. A list of reputable lenders is easy to find with us that offer cash loans in Canada. Take a close look and compare your options, including products offered, terms and conditions of the loan, interest rates and qualifications. When you have found the loan you’re looking for, just click at the “Apply Now” next to the lender you want to try. You will be then redirected to lender’s website where you complete your loan application.
How Does A Short Term Cash Loan Works?
A cash loan is a short-term based loan that provides immediate liquid funds into borrower’s account on an accelerated timeline as compared to other retail loans. These types of loans are easily available online and get processed within few working days. The borrowed cash can be freely used to handle any sort of unexpected financial emergency on time.
Fast cash loans generally have high interest rate as compared to other traditional, as they are approved quickly without any hassles and are given for a short time span. This means there is a higher burden of risk on the part of the lender as the borrower might default as there is no valuable security involved. Generally, in secured loans, mortgage rates are lower than fast cash loan rates because thedefaulted payment cash lead to foreclosure on the home wherein the lender can reclaim the majority of loan losses.
These types of short term loans work almost same like payday loans. They are secured against a postdated paycheck. This small loan is majorly attributed to the salaried sections of Canada. In Canada, principal amount offered by loan providers on cash loans range in between $500 to $10,000. The loan is structured to repay in parts from few weeks to years.
Who All Can Use A Quick Cash Loan?
Fast cash loans are available to any Canadian above 18 years of age, having verifiable source of income and an active bank account. Typically cash loans are used to pay forsudden expenses, cover a medical expense, or car repairs. Due to the higher interest rate attached with the loan, people who are not in urgent need for cash may not be the target market for such a product.A typical user of a small cash loan might exhibit one or both of the following characteristics:
- Having hit by the emergency and in dire need of immediate cash to cover an unforeseen expense e.g. car repairs, paying utility bills while payday is still a few weeks away.
- Those requiring a sizeable sum of immediate cash to cover an unforeseen expense e.g. a sudden medical expense, which their savings and next paycheck may not be sufficient to deal with.
What is the procedure of getting a cash loan in Canada in 2020?
Here’s the detailed procedure of getting a small loan in Canada:Application
Most payday loan application is easily available online, in just few mouse clicks. However, if the borrower does not have an access to Internet, these loan applications can be made through select retail stores or over the telephone as well.Lending Decision
Once the application is completed, the lender will take the decision to process your loan application. Online applications generally get processed faster.Funds are expected to be receive from anywhere within a few hours to few business days.Documentation
After the lending decision is made, the lender will approve the borrowing amount to the borrower according to his/her needs and repayment capability.Direct Fund Transfer
At this stage, the loan becomes funded and is directly transferred into the borrower’s account.Repayment
During the “Application” and “Documentation” steps, the borrower and lender will mutually agree on repayment terms in terms of principal and interest repayments. These loans are then repaid over a specific timeline.
What are the merits of having cash loans?Despite being offered with higher costs, there are certain advantages offered by fast cash loans:
The most effective and primary benefit of cash loans is the speed, reliability and efficiency that borrowers need at the time of emergency by offering them immediate funding. Here under these loans the debt funding occurs on an accelerated timeline due to the lower volume of requirements. So, borrowers can get to work deploying it to pay off expenses almost instantaneously.2. Lower Monthly Payments
Unlike payday loans, which are offered for a period of a few weeks, it is possible for cash loans to be offered for a longer timeframe that decreases your biweekly/monthly repayment amount.3. Fixed In Time
Fast cash loans tend to be issued on a shorter-term basis, unlike other conventional loans. So lenders are more comfortable with providing these loans at fixed rates. This enables the borrower to keep a check on his/her expected cash outflows and allows for a simpler budgeting process when considering the various debt options available.
What are the factors to consider while applying for a cash loan?Here Are Certain Factors To Consider About Fast Cash Loans:
- Interest: Cash loans are an expensive financing option. The higher rate has been charged by the lender on them.
- Rinse and Repeat: It has been observed that borrowers generally find themselves in a cycle of debt wherein each paycheck goes towards the repayment of existing loans, leaving little for the operating expenses they have applied loan for. The loan extensioncome as a consequence with strings attached in the form of higher fees added to the original amount.
- Predatory Practices: There may be many borrowers susceptible to lending practices of few lenders that are intended to be unfavorable from their perspective as they think lenders might exploit the contract with some loopholes or might mislead marketing materials. Therefore it is critical for the borrowers to deal with only legitimate lenders or registered institutions that are vetted by regulatory authorities.
What Are Cash Loans Best Practices?
Ahead of applying for cash loans, it is in the best interest of the borrowers to follow some precautions because these loans come with high borrowing costs and other affiliated fees:
Borrow Right Amount
Always remember to not borrow an amount more than you need. It can tempting to take the higher amounts offered but higher amounts means higher interest rates and that will make repayment much larger. So, take out only what you need to cover important expenses or paycheck shortfall.
Review Documents Carefully
Read the loan agreement and other documents related to the loan carefully. Although the Canadian regulatory landscape is relatively stringent, but it is equally important on the part of borrower to understand what type of fee structure and fee type they would pay in case of missed or late payments.
Make Payments On Time
Always keep in mind to make payments on time. Timely payments are not subject to any fee charges from the lender.
FAQs related to Cash Loans-
Can I Get A Fast Cash Loan With Bad Credit?
Yes, it is possible to get a cash loan despite having a poor or low credit score. Fast cash loans in Canada are often easy to get through a fast and easy online application process. If you have bad credit history, you still have a chance to get the loan but it may come with even more higher interest rates.
What Do I Need To Get A Quick Cash Loan?
Getting cash loan requires least paperwork than most other types of loans. The basic requirements to grab these loans are a valid ID proof and a proof of income, a legal age of eighteen years and a valid bank account in your name. Any lender will also want to check your credit score to make a risk assessment. Also, your income will determine the terms that lenders offer you.
How Much I Can Borrow With A Fast Cash Loan?
The amount that you can borrow with a fast cash loan will depend on few factors like the lenders you will go to, your monthly income and your requirements. Different lenders have different lending practices when it comes to fast money loans. The more you earn, the more you will be able to repay. So, in this situation the lender would be more comfortable offering you a larger sum. Typically you can obtain cash in amounts of $500 to $5,000 or more.
What Are The Best Alternatives To Payday Loans?
Payday loans are fast and easy, but they come with several drawbacks. Fortunately, payday loans are not just only fast and convenient borrowing option. For example, personal installment loans offer much better cost, provides larger size loans and also over a longer period of time.
Credit cards also serve as a better alternative to payday loans in many cases. It may be hard to get high credit limits if you have low credit score, but it is easier to get cash advance with credit cards. You can transfer money from your credit card to a checking account.