Comparison between Same Day Payday Loan and Traditional Loan

Payday Loan vs Traditional Loan

There are assumptions of many people that same day payday loans and traditional loans from financial companies are the same. For someone a traditional loan could be a life saver when one is in emergency need of money, but it does not take much long to become an additional trouble rather than a solution if it has been dealt with the wrong financial company. First of all, it is not that easy and requires aplenty of procedure to receive approval to obtain a regular loan. It is assumed by many people same day payday loan are the same. But the differences between a same day payday loan and a regular loan are quite remarkable. Here are some of the important facts that differ between these two.

The application process is one of the major differences between the two types of loan. With the regular loans which are offered by the traditional banks or financial companies requires a personal presence to submit an application for loan. But same day payday loan can be applied online from anywhere by filling out the loan application from and submitting required details online. Then the payday loan provider would get on to the application in same day.

As same day payday loans are processed online they always gets a faster approval then a traditional loan from banks. A regular loan takes three to five working days to get an approval depending on the financial institution. The approval procedure may even take week to months depending on the amount of borrowing. On the other hand, it takes less than 24 hours for the approval with the same day payday loans procedure. When the application form is properly filled then the borrower just has to wait for the notification whether the application has got the approval.  Some loan providers even provide approval of loans in less than two hours.

The possibilities of approval with same day payday loan applications are always comparatively higher than the regular type of loans. It is because while providing loan the lender takes only one fact in account to determine whether the borrower is eligible to receive loan that is the capability of repaying back. On the other hand regular loans always have the requirement of borrower’s good credit history, but to get approval for a payday loan one does not require possessing a good credit history.

If the borrower is 18 years old with a steady income and has the capability to repay the amount of the loan then it is very likely the applicant would receive a quick approval on the approval. The loan amount would be deposited directly to the borrower’s bank account after the loan has been approved. - OFT Payday Loan Policy

The payment procedures are much easier with same day payment loan compare to regular loans. Regular loan repayment procedure involves with personal presence at the bank or financial institution where the borrowers of same day payday loans can repay the loan amount online. Although the interest rate with this type of loan is rather high than traditional loans but with all the convenience and other benefits one can certainly overlook this issue.