The definition of a cash loan is a short-term loan that gives borrowers immediate access to cash. They're typically used to cover emergency expenses and must be repaid within a short period, often weeks or months.
Payday loans, personal loans, and title loans are all popular cash loans. Payday loans are small, short-term loans due on the borrower's next payday. Personal loans offer larger amounts and longer repayment terms, while title loans use the borrower's vehicle title as collateral.
If you need a cash loan, Lightning Money Loans can help. We work with multiple lenders and financial partners and with your one online loan request we can submit your information to multiple lenders and financial partners to see if one is able to extend the loan that you're looking for.
Now that you're clear on the definition of cash loans let's examine how they work.
Start with an online loan request through Lightning Money Loans to obtain a cash loan. The Loan request requires basic personal information, such as if you're currently employed or are on benefits, how long you've been with your employer or on benefits, a valid bank account, and etc.
Example: John needs $500 to cover unexpected medical expenses. He fills out an online loan request form and submits his up to date information and bank account details.
After you submit your loan request, the lenders and financial partners will review your information. Since cash loans are usually for small amounts and short-term, you often get approved fast—sometimes in just minutes. If you are approved, the money usually gets sent to your bank account via direct deposit, but you will have to get the specifics from the lender or financial partner.
Example: John's loan request is approved within minutes, and after he agrees to the lender's Terms and Conditions the $500 is deposited into his checking account by the next business day.
Cash loans usually have short repayment terms, from a few weeks to months. As the borrower, you must repay the loan, fees, and interest by the agreed-upon due date. The terms vary depending on the type of cash loan.
Example: John's cash loan has a two-week term. He needs to repay the $500 loan plus a $75 fee, totaling $575, by his next paycheck.
The definition of cash loans covers various types of short-term loans that provide quick access to funds. However, this convenience comes with relatively high fees and interest rates. Annual percentage rates (APRs) for cash loans can be higher than traditional loans, often exceeding 100%.
Example: Since John borrowed $500 with a $75 fee for two weeks, the APR is much higher than conventional loan rates. But, conventional loans would typically NOT be available for $500 and would typically have a longer repayment period, which is not what John is looking for.
Cash loans are an invaluable option for managing urgent financial needs, offering several advantages that make them appealing in times of need. Here's a balanced view of the pros and cons:
So if you're in need of a cash loan, submit your loan request online at LightningMoneyLoans.com and let us contact multiple lenders and financial partners to see if one is available to lend you money and deposit the funds into your bank account as soon as the next business day.
