Cash loans are unsecured and short term loan, which are repaid within short span of time. These are one of the most popular and in demand loan in the financial market. The reason for its popularity is faster approval and fast money that is; the person is not needed to wait for long to procure finances from the financial market.
Cash loans allow the borrower to borrow smaller amounts. And, the borrower can use the loan amount in meeting his small and day to day sudden arisen expenses such as college fees, electricity bills, and debt payment etc.
As it is already known that, in cash loans, there is no need to place asset as collateral against the loan amount. This implies it carries high risk; so in order to balance risk, the lender charges high interest rate from the borrower. But, this doesn't means that the rates are sky high rather; they are also competitive in the financial market. The lender also ask the borrower to submit his employment proof, income proof and certain post dated cheques. All these proofs together with post dated cheques give the lender, an assurance that the borrower will make timely repayments.
Fortunately, the lender while providing cash loans doesn't take into account the credit score of the borrower. But, still it is always desirable to have good credit score in order to avail loan on competitive rates. However, bad credit scorers are also not at all needed to lose their heart as there are many lenders, who also provide cash loans to bad credit scorers on competitive rates.
Thus, cash loans have been designed to meet immediate cash needs of the person.