Quick loans are among the most sought-after loan solutions. They are the last-minute saviours available with no condition of guarantor or collateral. These are perfect for small needs.
Knowing the application process is key to speedy borrowing
You know that the loans are speedy, but that is possible due to the fast application process. Hence, it is vital to know about that process. The guide below reveals all the details of the application process and how your funds are approved.
What are quick loans?
The quick loans are small, short-term loans available online with instant approval. These are approved as per your current repayment capacity, irrespective of credit score and employment status.
Private online lending is the most reliable way to get these loans. Due to the speedy online loan process, you can get an instant cash loan in 1 hour without documents. This is because the funds are approved instantly as per your current income regularly. Hence, no detailed documentation is required.
However, basic financial and personal details need to be uploaded online to check affordability by the lender.
Process to apply for quick loans
Let us first understand the process of a quick loan application.
Step 1 – Choose the right type of quick loans
Quick loans, too, have several types. As per your requirement and financial circumstances, choose the loan type. These are –
- Short-term loans – These offer a small amount that is repaid in several weeks or months.
- Same day loans – Funds are released within a few hours and are repaid within a few weeks only.
- Instalment loans – A larger amount of money that is paid in fixed instalments spread over months.
- Bad credit quick loans – Offer ed to only people with poor credit, available on instant decision, but have higher rates.
Step 2 – The online application process
Now comes the process of applying to a lender. You need to submit several details for that, but you can do it digitally.
Information required to apply –
- Name and date of birth
- Residential address
- Bank account information
- Monthly income and expenses
- Employment or earning details
- Contact details (mobile number and email)
Step 3 – Go through the identity and eligibility checks
This step is important as it decides whether the lender should start assessing your application or not.
Common eligibility requirements
- Minimum age (18 or over)
- Regular income, whether employed, self-employed, or on benefits
- Residency proof
- Valid contact details
- Active bank account details check
Step 4 – Credit check explained
Two types of credit checks are performed. Soft check and credit check. Quick loans include a soft credit check. Hence, they are more flexible than traditional bank lending.
Soft credit check includes –
- These are used for pre-approval
- Give lenders an overview of your overall credit record
- Does not affect credit score.
Hard credit check –
- Performed a detailed credit history check
- Visible on credit reports
- Gives an accurate affordability assessment
Step 5 – Affordability assessment
Even if the loans are approved fast, an affordability assessment is vital.
Factors assessed for affordability
- Monthly income vs expenses
- Rent, bills, living costs
- Existing debts
- Debt-to-income ratio
- Loan repayment effect on your finances
This protects you from getting an expensive deal that may not be affordable for you.
Step 6- Automated decision-making
Due to automated underwriting decisions, loans offer fast funds. Instant decision is the key force behind making the quick loans speedy and dependable. Also, fast decisions are required as these are credit-friendly loans.
How automation helps –
- Digital application process
- Instant risk assessment using algorithms
- Instant approval decisions in a few minutes
- In complex cases, human review may be required
After assessment, your application can be –
- Approved
- Declined
- Conditionally approved (need more information for final decision)
Step 7 – Loan offer and terms review
If you are approved, the lender gives a loan offer. You need to be sure about all the aspects of the loan offer. Check them all as once you sign the deal and cross the cooling-off period, there is no coming back.
The loan offer includes the following –
- Loan amount
- Interest rate (APR)
- Total amount repayable
- Repayment schedule
- Late payment consequences
- Fees or charges (if applicable)
Always review these factors in your loan offer carefully. Ask questions in case of any doubt. Your decision should be informed and not full of doubts.
Step 8 - Accept the loan agreement
Read the loan offer and the loan agreement that has terms and conditions carefully. If you are satisfied with the loan terms, give acceptance.
How do you accept the agreement?
- Digital signature
- Online confirmation
- Consent to terms and conditions
- Consent to direct debit for repayments
This step confirms that you understand the responsibilities as a borrower. Hence, the further process of funds transfer can take place.
Step 9 – Fund disbursal
Once all formalities are done, it is time to receive funds in your account. This part is always fast, as the loans are designed for financial emergencies only.
How fast can you get funds?
- You get funds within a few hours.
- Instant transfers happen within minutes in some cases.
- Standard fund transfer time takes 1 working day.
This speed depends on the factors below –
- Time of approval
- Bank processing time
- Payment method
Step 10 – Repayments – How do they work?
The funds are usually repaid through direct debits. But several other ways are also available. Sometimes you get to choose the repayment method. But sometimes you need to follow the way as per the lender’s offered way to pay instalments.
Common repayment methods are –
- Single repayments for short-term same-day loans.
- Fixed amount instalments
- Weekly, bi-weekly, or monthly instalments
What are the advantages of quick loans?
Of course, when the loans are so popular, there should be several benefits attached to them.
- Minimal paperwork
- Fast application and approval
- Credit-friendly lending
- Handy online process
- Useful for emergencies
Risks of quick loans you should know
Yes, quick loans are quite useful and dependable. But they have some risks too. As a borrower, you should know about them.
- Higher rate of interest
- Risk of debt cycle in case of default
- Short loan term
- Fees for missed or late repayments.
What are the tips for using quick loans?
Several ways can be considered to use quick loans in the smartest possible way. This will help you repay the funds on time and avoid the threat of a debt trap.
- Borrow an amount you can afford to repay.
- Check repayment dates carefully to pay on time.
- Choose after comparing lenders and APRs
- Contact the lender if you face issues with repayments
- Avoid rolling over loans to avoid paying a higher cost
Conclusion
You can now understand how the quick loans in Ireland are useful for you. The application process is simple. Hence, the approval comes easily. Just make sure you are working on your repayment ability.
After that, the money directly comes to your bank account through a fast electronic fund transfer. Next time you need funds, rely on quick loans and repayment on time through affordable deals.
