Doorstep Loans – Instant Cash Loans To Your Door
Find yourself in a tight spot financially? Do you have a medical emergency that unexpectedly popped up and you can’t pay it immediately? Has your car broken down and you don’t have the funds to cover the repair costs? If you’re experiencing any of the above situations and you are in a short-term cash crunch, then a cash advanced loan could be the answer to your problems.
Doorstep Loans are also known as Home Collection Loans and come in handy when you’re in a tight spot.
What is a doorstep loan?
As the name suggests, it is a small cash loan that is delivered directly to your doorstep. The amount can range from £100 – £1000, but rarely does the amount exceed that. You can receive the amount required within 24 hours of application, but the transaction is usually done much quicker. The agent will come to your home with the necessary papers, and the procedure is quick and easy.
It is extremely convenient as:
- You don’t have to leave home to apply.
- The Agent comes to your home to deliver the amount.
- You don’t need bank papers or other financial documents thereby removing the hassle of applying to the bank.
- Easy to pay weekly instalments.
- Great for a mid-monthly crisis.
- Agent will re-visit you at your home and collect the instalments, so you don’t have to worry about going to deposit the amount elsewhere.
How can one apply for Home Collection Loans?
All you have to do is search the internet for a reliable Doorstep agency from your home. Then on the Lenders website you just need to fill up the application with some basic information related to the loan requirements as well as residence address and other information. Once the lender receives the application, it sends an experienced agent to your residence address to complete the process.
Are Doorstep Loans for you?
If you are need of a small amount to pay off bills that warrant immediate payment until you receive your next pay check, then yes, cash loans to your door are for you. There are a few situations where you could take a loan:
- Unexpected Medical emergency
- Unplanned Car Repair
- High monthly bills that require payment
- Other unexpected payments that you do not have the funds for
However, it is worth mentioning, that you should apply for a doorstep loan only if the need is urgent and immediate, as you do not want to start the month with another loan to tide you over.
What is the Application Process for Door to Door Loans?
All you have to do is show proof of income (So that they know you can pay back the loan) and discuss your financial circumstances with the Agent to determine the amount that is to be handed over. All you have to do is put your signature on the dotted line, and the Agent will do the rest.
Decisions on the loan are made solely on the amount of information volunteered by the client. The more information is given, the better equipped they are to offer you the best deal. The Agent will analyse the information, and if he is reassured that the loan can be paid back, you could have the amount required in your hand the very same day!
You don’t even have to leave your house for repayment of the loan. The Agent will come to your house weekly (or, however, the repayment schedule has been decided upon) for collecting funds.
What about the interest rates of these type of loans?
Doorstep loans are unsecured loans, and hence, the interest rates will be higher than the interest rates for any secured loan. The good thing is that there are many lenders in the market competing against each other to acquire new clients. It is because of this; the interest rates stay competitive. A potential borrower needs to look for the best rates before applying for a doorstep loan.
What to keep in mind while applying for Cash Loans to your Door:
If you are in need of a small amount that is not dire, you should refrain from applying for a loan. The interest rates are very high as compared to regular bank loans.
- Before applying, take your time, and rethink your decision.
- If you do apply, take only what you need. With such high-interest rates, you don’t want to take another loan to cover your previous loan. It will be an endless cycle of debts and payments.
- Read the fine print before putting your signature on the dotted line.
- Find out important items like loan amount offered, repayment duration, etc.
- Learn to judge the character and attitude of the agent who comes to your home. This will help you avoid unpleasant situations at a later date.
Pros & Cons
These loans seem to be the quick fix solution to a short term money deficit and with everything, there are pros and cons to it, so let’s recapitulate some of them.
- Easy availability of funds during a financial crisis
- Almost no documentation required
- Good Credit Rating not necessary
- Delivery of documentation and cash to your home
- Weekly collection of instalments from your doorstep
Looking at the above points, it seems that a doorstep loan may be the short term answer to your cash crunch, but it may affect your life for a while as it seems you’ll be paying back your loan for some time. It’s up to you to weigh the positive & negative aspects of it as long as you are aware of the fine print that accompanies this seemingly great deal.
Nobody wants to see a bad situation getting any worse which is why it is imperative that the borrower and the lender are completely honest about the process. The Doorstep lenders duty is to make clear what they can offer the borrower, and the borrower’s duty is to be transparent about their personal finances and what they can afford to repay.