Banks offer a large selection of loans for a variety of purposes, with different conditions. Each of the loans is characterized by its advantages and disadvantages. However, it is worth noting that these advantages and disadvantages are strictly individual. Indeed, for one client, a specific situation will not be considered an advantage, and for another, any disadvantage will not seem to be something negative, rather, a neutral feature.
The most popular are consumer loans. And a fairly large percentage of citizens prefer to take loans in cash. This is due to some features of this banking offer.
Benefits of Cash Loans
- Rapidity. Typically, applications for cash loans are considered very quickly. Usually on the 3rd day you can get a full package of documents and the requested amount. Some banks process applications within an hour. This feature is important for those people who are in dire need of money. In addition, there is no need to wait long if the bank will respond positively to the request.
- Inappropriate purpose. Convenient in the sense that the lending program does not indicate specific goals for which the issued funds may be spent. And this gives the borrower greater freedom in the management of money. He can spend them on his own. This is convenient for those who plan to make some kind of off-standard large purchase or need funds for current expenses.
- Attractive loan conditions. In most banks, the issuance of cash does not require the presence of guarantors, certificates of proof of income, as well as collateral. This simplifies the collection of documents for a loan.
- Attractive repayment terms. Repaying a loan is usually offered in equal installments. Moreover, there is the possibility of early payment of all funds. You can pay using various methods, which is also very convenient.
Sometimes the disadvantages of these types of loans include a high interest rate. This is partly true. However, it should be understood that different banks have different rates. And it is quite possible to find an option with a fairly low interest rate and attractive conditions.
Another feature is the limit on the amount. That is, there is no way to take as much money as you like in cash - there is a “ceiling” set by the bank. But, it is worth noting that for most of them it is quite high and can well satisfy the consumer needs of the average client.
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