You may have heard them described as same-day, quick, short-term or cash advance loans. All of these names can be used to describe this type of lending, so you should not distinguish between them. Moolr have thus addressed some of the most common questions below: Short Term Loans: A Guide
The process is usually very simple – you fill in your details, including income level, and bank details (so the provider knows where to send the money), and if you’re accepted, receive your funds; often the same day.
At Moolr, we take this simple process and enhance it. At the beginning of the process, we send your information to our secure, intelligent software engine. What this means for our customers is that rather than having to enquire with each lender individually, you are enquiring to over forty in one go. A one-stop shop, with little more time required – all you have to do is wait for us to match you with a provider. This process can take up to 5 minutes, but in the large majority of instances, it’s less than a minute.
Absolutely not. If you are charged to find this type of solution then please do not proceed, as we feel this is unethical, and unjust.
Rather than charge our customers to use our software engine, we have relationships with the lenders. We receive a small fee directly from them, by way of us introducing our customers to them.
Not at all. APRs are set by each individual lender. Introducer fees are common place in business, and the providers see our fee as a very competitive method of finding you, when compared to traditional advertising methods.
Yes you can. The beauty of this product is that the affordability measures are based mainly on your income. Of course, the number of agreements you’ve had is accounted for, but the ratio between your earnings and your borrowing request is the main factor that is considered.
Transfer times vary, but in most cases, unless lenders request further information (which is rare), the lender will send the funds the same day; sometimes within an hour.
Upon application, you are required to have a bank account, for which you will provide details. This not only ensures you technically have the means to repay, but also that the lender is able to transfer the funds directly in to your bank account – a quick and simple way to get out of troublesome situations.
No. They are intended for one-off use, when an unexpected situation such as a car breakdown, household appliance malfunction, or vet bills means you are short of money. Accepting your agreement means that you need to budget very carefully the following month, to ensure that there is no snowball effect, and to avoid late payment charges if you fail to settle in full.
In most cases there will be no need for paperwork, as the details provided on your application form will be sufficient for the lenders to make a decision. Occasionally however there may be the need for a small amount of extra information, in which case you will be contacted with the details.
Repayments for a short term loan will come direct from the borrower’s bank account on the day they next receive a wage. This could be any day of the month, but for many it is the last Friday or last working day of a month. Prior to this date, you may receive reminders by text message or email that the payment is upcoming.
Once you have repaid your short term loan in one lump sum, it means that your loan is paid off in full, and the agreement is complete. What’s more, if you are borrowing an instalment loan that lasts longer, say between 3 and 12 months, you will usually make repayments in equal monthly instalments on your pay date or make one big lump sum payment (less likely) at the end of the loan period, depending on the terms of the lender and the contract you signed with them.
All lenders will require the bank details of a borrower so that funds can be deposited into their account speedily and without snags. This also helps with the repayment, as it is generally made via a process named the Continuous Payment Authority, which gives the opportunity for lenders to automatically take funds out of the borrower’s account. This simplifies the whole process and means you don’t have to do anything more once the agreement is in place. Continuous Payment Authority cannot be cancelled on the customer’s end but can be easily stopped by simply contacting the lender.
This depends on the terms and conditions of the contract you sign with your particular lender.
Some of the lenders we feature allow you to repay early and
some do not. Please check the terms and conditions on the lenders’ website for
confirmation. Some lenders may charge a small fee for such an arrangement,
others may not, and you may save money by only paying interest for the days the
loan was still active.
Thus, if there are no penalties and you find that you are in a financial position to repay your loan off early, it is a good idea to do so.
When making repayments on your short term loan, those payments should really only come from your account – hence the Continuous Payment Authority set-up that collects the funds from you. In special circumstances, you could contact your lender and ask if someone can make payments on your behalf, though in such situations a guarantor loan may be more suited to your needs.