Same Day Loan or Regular Loan? Which to Choose?

If you find yourself burdened by financial trouble, one way of getting out if it is through applying for a loan. The question is, which loan? Not all loans are made the same. Many people consider regular loans to be a way of means to escape financial problems, but they can lead to additional trouble if not handled properly. Plus, getting approved for such a loan is not an easy or often straightforward process as there are a number of requirements that you, as the loanee , must meet. Not the least of them being the fact that you have a clear credit record.

In this article, we shall talk about the four main differences between a regular loan and a same day loan. Hopefully, once you've read this, you'll learn a thing or two that will make your decision on which to choose much easier and perhaps lead you to the right lending company eventually.

Application and Approval Process

The first big difference between the two loan types is the application process. When it comes to regular loans, you have to pay a visit to the financial institution personally in order to apply for it. However, the same does not apply for same day loans. In this case, the loan application can be done online. You just have to fill out an online form and send the requirements and the lender will process the application almost immediately.

The approval process for the two is also quite different. While it can take days and even weeks to get approved (or in many cases not approved) for a regular loan, in case of a same day loan, your approval can come much faster. Within the 24 hours in fact. Some lending companies can even approve your loan in a few hour.

In order to get fast approval for a same day loan, you must be able to prove that you are 18 yeas or above, and that you have a bank account. After the loan gets approved, the funds will get deposited on your account.

Payment Process

The payment process is another difference between these two loan types and it is a bit more complicated for regular loans. In this case, you often need to visit the lending company's offices personally (although some banks now offer online payment options as a means to making it easier for the customer). When it comes to same day loans, the company you work for will pay for it, but they will deduct the borrowed amount and the loan interest from your following salary.

Rate of Interest

This is where same day loans are somewhat inferior to regular loans. The interest rate for them can be considerably higher than for a regular one. Still, keep in mind that, with the quick approval and the convenience of applying for it, the higher interest rate can be a good pay off.