Tuesday, August 20, 2019 | Updated at 2:55 PM ET


If You Want to Obtain Loans Quickly, Try These Tips

First Posted: Aug 09, 2019 10:47 AM EDT
Loan Approved

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Different people need money for different reasons. And the way we find financial solutions differ from one individual to another, which is why some people would rather obtain loans to finance their business instead of soliciting financial help from friends and family.

There is no denying that loans make our world go round, from small business financing to big mortgages, humans are constantly seeking financial solutions every day, and loans have proven to be really helpful. However, the rigorous nature of loan applications - evident in its loads of documentation and formalities - has chased many people off. Hence, people would rather opt for easier and faster options, rather than spend weeks processing a loan application that could be declined in the end. But, guess what; loans are starting to evolve! Gone are the days of rigorous loan applications. These days you can even apply for loans right from the comfort of your couch if you know the right steps to follow. So, here are a few tips to get you started on finding many quick loans.

Hit up your employer

Did you know that your employer is a potential money lender? In fact, you can get as much as you may need from them without going through too many formalities. If you need money ASAP, your workplace is the best place to start because many companies extend an advance on salaries. Maybe you haven't noticed, but many of your colleagues must have been exploiting this opportunity. So, why not join in on the action whenever you need funds quickly? The funds could be equivalent to your 1-6 month's paycheck and will be deducted from your salary over the next couple of months, say 3-24 months. On the plus side, this loan can also be custom-tailored to your needs, and within three days at most, you will be able to access the funds. 

Credit Card cash withdrawal

Why go far looking for funds to attend to your emergencies when you can quickly access your credit card and use it for cash withdrawal? A credit card can be used to withdraw money from an ATM, with the amount accessible being equivalent to 40-80% of your credit card limit. In view of this possibility, most banks will even allow you to extend to over-extend your limit on a case-to-case basis, so you always have enough to run your emergencies. However, you need to note that this comes with some charge. And whenever you over-extend, you should be ready to pay up an over-limit fee. 

Top-up loan

Already have a mortgage or a home loan? If so, you can leverage this opportunity to get a top-up loan for as long as the duration of your home loan. However, it is important to note that you won't have access to this loan at the beginning of your home loan repayment tenure because for this to work, you need to have repaid the existing home loan for some years as the combined value of the top-up loan and home loan cannot exceed a certain percentage of the home value. On the bright side, once you are eligible to get this loan, you can secure it within three days since the lenders already have your documents.

Online loan

Thanks to technology, borrowing is now easier than ever. If you need loans ASAP, you can get them as fast as within 30 minutes to three days depending on the type of online loan you need. Why should anyone spend several days queuing at the bank or lender's office when they can apply for online loans right from the comfort of their homes? This is a massive improvement on the traditional personal loan applications where borrowers had to go through several rigorous steps before getting the funds they need. With this type of loan, quick disbursement is guaranteed, albeit you might need to visit the lender's office to finish the request (but, even that isn't rigorous or stressful).

Loan against securities 

Another quick money source is a loan against securities. You can pledge your mutual funds, FDs, shares, and insurance policies as collateral. But in the case of shares and mutual funds, many lenders will only loan you funds equal to 50% of their value, while FDs can offer you loans of up to 75% of their value. Loans acquired via these sources often attract lower interest charges, and you can be sure of quick disbursement.

Conclusively, getting a loan is now easier than what it used to be, so you have nothing to worry about. If you don't have the right knowledge about the quick opportunities available to you, you can hit your financial advisor up, and they will help you choose a smart loan system that is fitting for your needs and financial status. 

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