Get a Personal Loan Fast: Here’s What You Need to Know

It’s not always possible to save enough money to handle emergencies. In cases like these, getting a personal loan fast can be a lifeline. A personal loan will cover many unexpected expenses, including health care, vehicle repair, and home improvement. 

In this article, we give you a detailed overview of personal loans and highlight important advice so you can have a stress-free quick loan experience.

What this article covers:

• What Are Fast Personal Loans?
• Types of Quick Personal Loans
• Four Things to Keep in Mind Before You Get a Quick Personal Loan
• Here’s Why You Should Be Careful With Quick and Easy Personal Loans
• Are Fast-Approved Personal Loans Legal in Australia?
• Here’s How to Find a LegitimatePersonal Loan Lender

What Are Fast Personal Loans?

These loans come with a speedy approval and disbursement process. Most individual loan applications and approval procedures might take time, but with a fast personal loan, you can get a cash injection in hours or days. 

Because of this, quick online personal loans are an excellent choice for those in urgent need of cash. 

Types of Quick Personal Loans

You can choose from several short-term personal loans if you’re out of cash. We give you a comprehensive overview of the most common alternatives and an explanation of why each could be a good (or a bad) idea:

1. Payday Loans

With payday loans, you can expect a payback within weeks. Payday loans are short-term loans with hefty interest rates for small sums of money. Therefore, payday loans aren’t ideal if you need a large sum of money quickly.

2. Instalment Loans

Instalment loans come with a longer repayment schedule broken up into equal monthly payments over a predetermined period. The interest rates associated with loans are often lower than those associated with payday loans.

3. Line of Credit

With a line of credit, you’re allowed to borrow money whenever needed. When you get a line of credit, you’re solely responsible for paying interest on the borrowed amount. You may benefit from applying for this type of personal loan if you have financial requirements that are constantly changing.

4. Secured Loans

A cash secured loan comes with a provision of collateral, which can be your car or your home, as a form of protection for the lender. The good thing is that the provision of collateral makes secured loans eligible for typically lower interest rates than those offered by unsecured loan providers. 

However, if you cannot make the required payments on a secured loan, you risk losing the asset used as collateral. 

Four Things to Keep in Mind Before You Get a Quick Personal Loan

When applying for a quick personal loan, there are several steps to follow to increase your chances of getting approved. These are no-brainers, but you might not get approved for the loan or not get your cash fast if you don’t follow them. 

Here’s an easy-to-follow checklist for you: 

1. Check Your Credit Score

Your credit score is one of the most important considerations. Before you do anything, check your credit score; as a rule of thumb, the better your credit score, the better the loan conditions and interest rates. 

2. Compare Lenders

Interest rates and conditions of loans depend on the lender, so you’ll have to shop around a bit. It’s vital to investigate what different lenders offer so you can find the best suitable one for you. 

3. Gather Required Documents and Apply Online

Ensure you have proof of income, occupation, and identification. Collecting these documents before applying for a loan saves time and speeds up the process. 

Online personal loans are already commonplace and accepted by most lenders, so take advantage of these. You can apply by filling out the application form and attaching the necessary documents.

4. Wait for Approval

The lender will evaluate your application and make a decision. If your loan application is accepted, the lending institution will communicate the loan’s conditions and how to get the cash.

You’re most likely to get your money within a few days, but if your documentation is flawless, you may get it within a few hours. 

Here’s Why You Should Be Careful With Quick and Easy Personal Loans

There are circumstances in which these personal loans are an ideal answer, yet, they aren’t without flaws. The following is a list of possible downsides:

Charges and Repercussions

They come with extra fees and penalties, which may pile up fast. Origination costs, prepayment penalties, and late payment fees are some examples of the types of fees associated with this transaction. 

Before committing to the loan terms, do your research and ensure you fully understand all the related costs. 

A Revolving Door of Debt

If you have trouble keeping track of your money, getting a loan could be the beginning of a steep slope. You risk falling into a debt cycle, in which you’ll have to take out new loans to pay off the interest on your existing debt. 

Are Fast-Approved Personal Loans Legal in Australia?

In Australia, you may encounter them under another name – Small Amount Credit Contracts (SACCs). While you can get personal loans legally in Australia, there are strict regulations in place to safeguard borrowers from abusive lenders.

Personal loan companies must abide by the Australian Securities and Investments Commission’s (ASIC) rules. They have mandated a narrow set of guidelines for personal loan companies to follow to comply with the law. 

Important rules include:

• Lenders can only charge a maximum interest rate on personal loans. 
• The maximum costs associated with a personal loan are 20% of the loan amount for the setup charge and 4% of the loan amount every month. 
• Interest rate caps allow payday lenders to charge no more than 24 per cent annually.

Here’s How to Find a LegitimatePersonal Loan Lender

Acquiring an instant personal loan from a respectable lender is vital to having a stress-free personal loan experience. Here’s what you should be aware of:

1. Check the Lender’s Licence

As a first step in locating a reputable lender, check if the lender has the appropriate licensing to do business in your area. A lender in Australia must have an Australian Credit License (ACL) or an Australian Financial Services (AFS) licence. The ASIC Connect website allows you to verify a lender’s licensing status. 

2. Inspect the Loan Terms and Ask Questions

Before consenting to the terms and conditions of a loan, ensure that you fully understand them. Examine the fine print for any prepayment or late payment penalties.

Don’t be shy about asking the lender any questions you may have. Any respectable lender would gladly respond to your inquiries and provide you with the data you need to make a wise choice. 

Wrapping Up

Handled sensibly, getting a personal loan fast may be a great resource for those who need financial aid. However, it is crucial to choose a reputable lender and to understand the risks involved to avoid getting stuck in a never-ending cycle of debt.

Remember to compare lenders, compile the necessary paperwork, submit your application online, and wait. Only borrow money from reputed lenders that adhere to all applicable legislation, and read the loan terms and conditions thoroughly before signing any paperwork.

Carefully consider the costs and risks of borrowing. Borrow what you can afford to repay and prioritise paying off the loan as soon as possible. 

By taking these steps and following the guidelines outlined in this article, you can use fast loans to meet your needs and improve your financial well-being.