A financial menace is always unwelcome. While physical damage can be handled by a doctor, it is often unlikely to make money rain. Families, friends, and savings can help just so much.
Surviving each month from one pay cheque to another does not really provide financial insurance. There is always uncertainty and anxiety about something going amiss. Earl Wilson once said, “If you think nobody cares if you’re alive, try missing a couple of car payments.”
When you are constantly worried about your finances, it takes a toll on your personal life. It is comforting to have a monetary backup in your life. It can be in the form of savings or someone you can look up to, in need. You feel safe and less anxious when there is a shoulder during emergencies to rely upon.
Since your savings can drain someday, and family or friends cannot always be relied upon, your reinforcements must be a sure source, ready at your disposal. For this reason, online smart loans were introduced in the market.
Direct lenders offer these loans online through their websites. These are personally customized borrowings, which are designed while keeping in mind all types of applicants. From loans for bad credit applicants to people without a job, the online lending industry provides solutions for all monetary hardships.
Most availed category of this type of lending includes three major sectors.
- Bad Credit Loans
A credit score is the biggest reason why most loan applications are rejected in the UK. The banks and other conventional sources rely majorly upon the creditworthiness of an applicant before giving an approval. This makes it very difficult for people having poor credits to borrow money during times of their financial crisis.
As a matter of fact, the credit of a person declines when one is unable to repay his debt on time. This is the reason why this person needs money the most. People with savings are often not the ones who find themselves in a debt trap. Rather, the ones trying hard to make both ends meet are the most desperate borrowers.
This is the reason behind the extensive demand for bad credit loans in the lending market. People need money to pay off their debt and to build their credit score.
- Short-term Loans
Another widely popular category of online loans is short-term loans. These include personal loans, quick loans, payday loans, etc. They are small loans usually between £100 and £1000.
You can use these loans for your immediate expenses that cannot be delayed or avoided. These are called short-termed since the repayment period is set a few weeks to a month. The lender expects the borrower to repay the money with the next pay cheque or any other income source.
These monetary guardians have proved themselves of great use in so many emergencies. Be it medical bills, car repairs, education charges or any other sudden expense: these instant loans help a person to get through.
- Instalment Loans
The installment loans offered by the UK direct lenders serve the long term needs of borrowers. These are best suited for people without a job, or those looking for a long-term repayment period for their borrowings.
The main highlights of these loans are the bigger amount and longer repayment method. A part of the borrowed money is paid back each month. These installments are spread over a long period of time (maybe a year) that can be repaid comfortably by the borrower.
Home renovations, car loans, student loans or debt consolidation can all be catered to using installment loans. People prefer these loans for their financial needs because they are given the option to accommodate a small amount in their monthly budget, which can be done comfortably.
The Final Word
These online loans are tagged as ‘smart’ due to their design. They serve all kinds of borrowers and are not bent towards lending to just the conventional category of borrowers. For every money-related emergencies, smart loans provide smart solutions.