What are Same Day Loans?
Same-day loans are a loan option that could provide money in your bank account on the very same day you apply for it. When you need cash quickly, this type of financial offering is very appealing.
We understand that it’s often not practical for you to wait days for a loan to come through when you have an emergency or urgent expenses. That’s what makes same-day loans so great – there’s no waiting and worrying.
Same day loans are used to cover immediate and emergency expenses such as medical bills, educational expenses, or utility bills. Although one thing to note is that this is not an ideal financial solution to address long-term payments as this might expose you to a debt trap.
Several lenders offer online personal loans such as Nifty Loans and Nimble since they employ automated eligibility checks and make approval decisions faster. This is in contrast with traditional lenders and banks which may take days to release loan results.
Same day loans can have a legal repayment period of 1 month to 2 years, depending on the total amount borrowed from the lender.
Advantages of Same Day Loans
The following are advantages of taking out same day loans.
Quick access to emergency cash
Same day loans provide customers with easy access to loan amounts that may be used to cover immediate and unexpected expenses such as medical expenses and utility payments.
Lenient eligibility criteria
Same day loans typically assess your qualification for a loan based on your current financial situation rather than your credit score or credit history. This is because same day loans typically have short repayment terms and, therefore, carry less risk compared with long-term personal loans.
Direct debit arrangement
Same day loan providers also give an option to set up a direct debit arrangement and payment plan with your nominated bank account to automate your monthly or fortnightly repayments.
Disadvantages of Same Day Loans
Same day loans typically have higher fees compared to longer-term loans. This is to cover for the risks associated with quick loan approval and a fully-online application process instituted by most same day loan providers and responsible lenders.
How Much Can I Borrow?
You can borrow same day loans ranging from $100 up to $5,000, depending on your eligibility and current financial standing.
Do I Qualify?
Same day loan providers have their own lending criteria in relation to their individual responsible lending guidelines. However, you can apply for same day loans through Friendly Finance by meeting the following minimum requirements and eligibility criteria:
- Be 18 years old and above at the time of the application period
- An Australian citizen or a permanent resident
- Have a regular source of income reflected in the 90-day bank statement
- Have internet banking details
- Active email address
- Centrelink payments should also only form up to 50% of your monthly income for you to be eligible for most same day loans.
As long as you meet these lending credit profiles, you can apply at the website at any time.
How Do I Apply?
Friendly Finance offers a hassle-free, online process for your same day loan application. You will need to provide the following information on the online application form during the application process:
- Personal details such as your identification information, contact number and email address
- Employment details
- Online banking details to extract your latest 90-day personal bank statements.
Friendly Finance will not perform any hard credit enquiries and will not require any fee during the application process. The pre-approval result will also be released online within a few minutes from the submission of your basic information.
Once you are matched with a cash loan lender, you might be required by the lender to submit additional information and requirements during their loan application processes, such as proof of identification (Australian Driver’s Licence or Passport), proof of employment, and necessary credit checks.
Once the application process is completed and the lender has deemed you to be fit for a loan product, a loan agreement will be sent through your nominated email. Review the details of the contract carefully and sign only if you agree to the terms and repayment period of the loan.
When Will I Get The Cash?
When your same day loan is approved, the money will be deposited into your bank account during the same day, provided it has been approved early in the day. Depending on your bank provider, the cash could be in your account within minutes of the deposit being made. Also depending on your bank provider, the transfer could take up to one business day to reflect.
In some cases, loan applications that have been processed very late in the day may only receive their cash the following day. The mainly depends on whether or not the transfer is made before the closing of business. The time taken for the cash to come through will always vary depending on what bank you use, and this is out of the hands of the lender.
All You Need to Know About Repaying Same Day Loans
The entire process for loan repayments is completed via direct debit order on the agreed-upon day, which is usually the day you get paid. The total amount that you’d need to repay would be stipulated on your loan agreement, as well as the details of your monthly debit order amount.
The agreement will include the fees and charges for late payment penalties too, in case you happen to miss a payment. Not repaying your online loan on time could decrease your credit rating and make it difficult to qualify for finance with other credit providers, so we recommend making sure you have enough in your account each month to cover your repayment.
Same day loans are a fast and easy solution when circumstances suddenly change and you need a helping hand. Friendly Finance is here to support you through the tough weeks until your next payday, and we’ll make sure you choose the right loan option for your situation.
If you have questions about same day loans or other loan types you can consider which may be better fitting for your financial situation, get in touch! We’re always happy to hear from new customers and do what we can to assist you. For more information on loans, you can also visit the government website www.moneysmart.gov.au