Almost everyone has faced a situation when there wasn’t enough money to pay for treatment, the purchase of household appliances, etc. It is not always possible to borrow from friends or relatives. As a result, the ideal solution is to apply for a loan. Let’s talk about financial institutions that offer short-term loans. Check how a bank loan differs from a payday loan.
Main Features of Bank Loans
In the past few years, consumer loans have become incredibly popular, so they are issued by many banks. You will need to go to the nearest branch and apply for a loan. If the amount is small and is taken for a period of 2-4 months, then a certificate of income confirmation is not required. But they may not approve a loan with a bad credit history. It is necessary to write a statement stating in it: amount; loan terms; purpose of the loan.
You will also need to attach a copy of your passport. After that, the documents will be reviewed by the relevant department, which will decide on the issue of the requested amount. The whole process takes from 1 to 4 days. Each bank has its own deadlines for resolution, which should be clarified with the employee.
As for the interest rate, it depends on the amount of the loan and the period for which it is taken. If the loan is up to $ 400, and you are sure that you will repay it in a month, then the overpayment will not exceed 20%. However, in any case, the rate depends on the financial institution, so look at the different options and choose the most profitable one.
Online Payday Loans
Many online lenders offer to borrow online with minimum requirements. You do not need to visit a financial institution. It is enough to fill out an application on the organization’s website and attach a scan of the passport to it. After that, the documents will be submitted for consideration to the department, where a decision will be made on the issue of the requested amount. Usually, the process takes no more than 1 day. Then a letter will be sent to the indicated email address. It will be a notification of the approval of the application or its rejection.
If you have other outstanding loans, you should notify the financial institution in advance. The person responsible for issuing the loan will definitely find out about this. The ideal solution would be to request a loan from the bank where you have an account. The employee will examine your solvency and make a decision. If you take a loan online, the interest rate may be lower. This direction is relatively new, financial organizations are trying to attract the attention of customers. As a result, you can get a loan at a 2-3% profit.
Getting a payday loan is more convenient and faster than from a bank. Moreover, it will take you minutes to receive money, regardless of your score.