Small Cash Loans - in an emergency situation
A small cash loan is similar to a payday loan except they tend to be for higher sums of money and have longer repayment periods.
Sites like Sifinances offer small cash loans for purposes ranging from medical needs or consolidating debt. Many banks offer loans, but they sometimes have lower level limits. What if you need less than $3,000? That’s where sites like Sifinances come in.
When it comes to loans, there are two types of loans:
- Secured loans - this is a loan where an asset or other money is used as collateral, an item you will lose if you default on the loan. An example of this would be a traditional car loan or mortgage. Another example would be the loan you receive from a pawnbroker for an item he will sell in his shop if you do not pay as agreed.
- Unsecured loan - this is a loan in which no collateral is required, however, interest rates tend to be higher than secured loans.
There are many reasons someone might need a small cash loan, fortunately there are institutions that are capable of filling this need.
Before you search for a small cash loan, there are other avenues to research before going this route. As mentioned before, a pawn shop might be a good place to score some quick cash, but the pawnbroker will only loan you a bit less than the appraised value of whatever item you pawn. He has to be able to earn back his money if you fail to pay back the loan.
A cash advance, while very similar to a small cash loan is another option. Many of the same small cash lenders also offer payday loans. Be sure to read the fine print and make sure you understand how each lender defines them. Payday loans also tend to have fast turnaround times between application and having the cash in hand.
You may also be able to access a cash advance from a credit card. This is almost as bad as a cash advance as there are not only fees associated with a cash advance, but the interest rate for them are typically higher than the usual interest rate. If whatever you need cash for would accept a credit card, it may be cheaper, in the long run, to just use the credit card as a credit card.
You could also borrow against your savings. Many banks offer a secured personal loan using your current savings as collateral. Your savings have to be a bit more than the amount of your desired loan. These loans tend to have lower interest rates than unsecured loans.
If you are enrolled in your company’s retirement plan, don’t withdraw from the plan if you are not 59 years old. What you should do instead is borrow from your retirement plan. While you will have to pay it back and pay interest on it, you should know that you are the person/entity you are paying back. Even the interest goes back into your retirement account. However, if you leave the job before you pay the loan back, you have to pay the loan back fully or it becomes an unscheduled normal distribution and becomes taxable, and if you are below 59 1, you will be assessed the extra 10% penalty.
You may also ask your friends or family if you can borrow from them. Make sure you pay them back, otherwise you will strain your relationships.
Following a few suggestions might helps you get a loan approved.
Shop around and compare quotes - This is the very initial step to apply for cash loans with better prices and better terms. If you are searching for such a loan, shop around to obtain the rates of interest offered by various online and offline lenders. Start your search at local banks. Usually, banks provide better rates of interest and better terms to their existing clients because they already have the account information and banking history of the clients with them.
Gather your income evidence - Get the evidence of your income as many lending organizations require the borrowers to provide income evidence to confirm their capacity to pay back the loan. The evidence might include the tax return or pay stub. Unless you gather the info and documents first, the loan approval and financing process might take more time than usual. Fill out a loan application - next thing is to fill out the loan application form supplied by your financial institution.
Remember that small cash loans are just a temporary fix, a bandage, to your financial issues.