No matter how well you craft your budget, sometimes financial hardship may seem inevitable, even if you’re earning a monthly salary. Even with an emergency fund on hand, you might still struggle to meet unforeseen expenses. This is especially true if such financial needs come up days or weeks before your payday. For this reason, payday lending facilities have become the order of the day in the corporate world.
Although payday loans have long been associated with poor financial decisions, they can be helpful in certain situations. For instance, if you have a medical emergency or if your car breaks down, these funding options can be your best bet. Their speedy disbursement ensures that you meet your needs as soon as possible.
But why are these e-transfer payday loans rapidly growing in popularity? Keep reading to learn more.
- Highly convenient
One of the main reasons people prefer e-transfers over traditional payday loans is their convenience. Everything is done online, so it’s easier for many people to access these lending facilities. As a borrower, you only need your phone or computer, personal details, and employment information.
You can submit this data through the financial institution’s website or mobile app. The lender will then assess the information to see if you qualify for a loan, and they’ll respond immediately. This assessment can take a few days, hours, or even minutes, and you won’t have to leave the comfort of your couch or office. Given the fact that people apply for these loans when they’re in need of quick financial help, it’s no surprise that e-transfer payday loans are among the best options today.
- No collateral needed
Apart from being convenient, another advantage of e-transfer payday loans is the fact that they’re unsecured. When applying for these loans, you’re not required to provide any form of asset as collateral.
Provided you meet the minimum requirements (legal age, good banking history, steady employment), you’re good to go. The lender will use this information to gauge your ability to repay the loan before they approve your application.
- Quick disbursement
Traditional money-lending institutions take about three to five days to process the disbursement of your money even after the application has been approved. If you’re pressed for time and need the money immediately, this number of days may seem like forever. That’s why most people today prefer modern payday loans over traditional bank loans.
E-transfer payday loans aren’t only easy to apply for, but they also have a short waiting time. Once your application has been approved, it won’t take more than a few hours for you to receive your money. Most lenders disburse the funds within an hour or two, while others may take up to a day. Rarely do they take several days, unless there are some unprecedented complications.
- Wide range of lender options
Another reason e-transfer payday loans have become popular today is the high number of options available. There are many online lenders willing to offer loans to employed people. This number has risen over the years, making it easier for prospective borrowers to access these facilities.
It’s important though to do your research before choosing a lender. Of course, most of the organizations you’ll come across are genuine. However, there are some that may take advantage of your desperate financial situation. Depending on the restrictions in your state or province, some payday lenders can charge unreasonable interest rates. To avoid falling victim to such traps, be sure to do an assessment before sending in an application.
- No usage restrictions
Bank loans, especially for huge amounts, usually come with restrictions on usage. Whatever you state in your application should be accomplished using the loan. For instance, if you want to buy a car, the bank will follow up to make sure that you do so.
Such restrictions are unheard of when it comes to payday loans. That’s understandable given the fact that the maximum amount you can borrow is often capped at USD$1,500. But it’s still an advantage because you’ll be the sole decider of how you use your funds. Be sure though to only apply for what you can afford to repay comfortably.
Conclusion
If you’re like many other employed people who face money problems occasionally, then you already know about payday loans. E-transfer payday loans have gained popularity in recent years, thanks to their ease of access. These payday lending options are very convenient, require no collateral, and are usually disbursed within hours. But as you plan to apply for these financial facilities, make sure you understand the pros and cons of payday loans. Also, choose a lender that has reasonable payment policies.
