The same-day loan has become a synonym for emergency funds, and one’s only resort needs to have cash or credit to deal with a financial emergency.
Many of us avail of it because of its instant approval and immediate access. If you’re wondering what makes one eligible for the same-day loan, then read the post to figure out the basic details of the same-day loan and eligibility criteria.
Same Day Loans – Basic Meaning
As the name suggests, a same-day loan is a loan type that is approved on the same day one applies for it. With the intent to help the borrower by providing instant cash or credit, same-day loans can be easily obtained from banks, financial bodies, independent lenders, pawnshops, and online lending networks.
It considers both good and bad credit scores, depending upon the kind of lender you choose. For instance, banks and financial bodies will accept good credit scores for this. However, you need to contact online loan service providers if you have a bad credit score.
Some other considered worthy facts to know about same-day loans are:
- It’s an unsecured loan, which means you don’t have to use any collateral to avail this loan
- The interest rate is generally very high with this kind of loan
- The repayment is flexible and can be done at the convenience of the borrower
- It’s generally required for a small amount. You can’t lend a huge sum with a same-day loan
- The lender might have access to your bank account for repayment purposes
Eligibility To Avail The Same Day Loan
Same day loan is indeed a blessing in disguise if you need cash urgently. But, before you apply for the loan, you need to check your eligibility. You will have zero hassles in availing of the same-day loan if you meet the below-mentioned eligibility criteria.
- You must have a steady source of income. Total earnings don’t matter. But, you should have at least a fixed amount every month.
- Every same-day loan applicant should have an active operative savings account. This is required as some repayments demand auto deductions of money.
- This loan is only possible if you’re of legal age, which is 18 years old in most cases.
- You must own a valid phone number and an active email ID
- You should hold a permanent residency certificate in the country
- Having work experience of a minimum of two years is a must
Note: This is just an overview of basic eligibility criteria. Any addition or deletion is possible as per the lender’s choice. Hence, it’s a must to inquire about the specific eligibility criteria, if the lender has any.
Documents and papers are required
Along with eligibility, you need to know about the documents required for quick same-day loan processing. Document verification is an integral part of the process to adhere to if you want to qualify for a same-day loan.
Have a look at the essential documents:
- You need to present valid proof of identity such as a voter card, PAN, passport, employee ID, divining license, etc.
- Some lenders might ask for proof of address. This is done to make sure that one doesn’t abscond after taking money. You can easily submit an electricity bill, driving license, ration card, telephone bill, or any other approved document as proof of address.
- Pay slip of the last three months or any other employer-issued proof of income.
- Detailed bank statements for the last 3 months.
- Credit score report. Even though not every bad credit lender will ask for this, some might require further processing.
How To Increase Your Same Day Loan Qualifying Chances
Even if you have all the required documents and meet all the eligibility criteria, it’s not necessary that your loan application be approved. You need to put in some extra effort to qualify quickly. You can:
- Apply online as approval is quick and less hassle-free
- Receive multiple quotes and compare them to find the best deal
- Keep all the required documents ready and present them instantly when the lender asks for them. It makes you look like a responsible lender, which further increases your approval chances
- Try to maintain a healthy credit score to increase your same-day loan approval possibilities
Use the Same-day Loans And Stay Tension Free
The same-day loan is a great financial tool that people can use to fix any emergency fund requirements. Know your eligibility criteria, stay informed, and avail of a same-day loan only from a verified and trusted lender. With this, there is no need to worry about a lack of funds.
