For those seeking rapid funds in a financial emergency, an instant loan can serve as an essential stopgap. Typically applied online in a matter of minutes, approved instantly and available in hours, it’s no wonder that 98% of borrowers say accessing instant loans is easy.
The benefits of instant loans have only become more compelling in recent years. Adding to the convenience of this fast, short term form of finance, has been a fall in interest rates, average loan costs and default fees.
An industry shake-up and instant loans benefits
The instant loans market underwent a dramatic transformation in 2014. This followed multiple years of payday lenders effectively operating unchecked, leading to a marketplace of exploitative interest rates, questionable selling tactics and a common lack of assessing affordability.
Today instant loans must adhere to the following rules:
- Interest and fees together must not exceed 0.8% of the amount borrowed on a per day basis.
- Borrowers mustn’t pay more in interest and fees combined than the amount initially borrowed.
- Default charges cannot exceed £15.
These guidelines have only added to the convenience and other benefits of instant loans – making this industry fairer and more responsible.
The guidelines above are under continual review. Since their introduction, many changes have taken effect in this industry – not least a fall in rates, lenders, charges and borrowers, as highlighted in the image below. In short, this suggests that the abuse of what is a useful credit facility, by the borrower and unscrupulous lender alike, has been greatly reduced.
An overview of instant loans benefits
Core instant loans benefits include:
- A helpful first step towards repairing your credit when you repay the loan on time and in full
- Approval rates that are far higher than for many other forms of finance – making them suitable for consumers with bad credit
- Fast approval and sending of funds – making this credit type perfect for emergencies
- The process is easy – requiring no ID or documents (ID verification is completed by digital means)
- The application is conveniently completed online – so you don’t need to phone or visit a bank branch in person
- Funds that are always sent quickly – generally this will be within hours, instead of days
- You look forward to a quick approval decision – displayed online once you’ve submitted your application
- A process completed online with an ‘e-signature’ – this can be added with any touchscreen device
- Instant loans offer flexible payment conditions and you may be offered a choice of different forms of credit – designed to best suit your needs
- You can repay early without facing penalties or extra charges
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Do I qualify for an instant loan?
Instant loans are accessible by the majority of UK consumers, however, they need to meet the following basic conditions:
- Applicants must be aged 18 years or older
- Applicants must be registered as a UK citizen or as a legal resident
- Applicants should ideally be in either full or part-time employment (this provides some assurance that the loan obligation will be fulfilled)
- Applicants must have a bank account for the funds to be sent to
Instant loans benefits with CashLady
When you choose CashLady as your instant loan credit broker, you choose an FCA Regulated Business that takes their responsibilities seriously. We are committed to offering the highest standard of products and services and adhere to the TCF policy for treating customers fairly.
Being FCA Regulated, we take steps to ensure that our borrowers can afford their loan before approving the application. Amongst our partners are many potential lenders, including Lending Stream, Quick Quid and Satsuma. Our partners are carefully selected and are assured to meet our high standards of customer service. In addition to an instant loan, you may also be offered: a 1 – 6-month short term loan; a line of credit or a guarantor loan.
- Our application process is fast and simple
- You can apply by laptop, by desktop and even smartphone
- We are a transparent FCA Licensed Credit Broker
- You have 24/7 access to our live chat feature for the answers you need when you need them