There are many loan products to decide from. However, choosing the right as per the requirement. Obviously, you will first analyse the interest and check the cheapest for yourself. Facilities like doorstep loans are more competitively priced than other loan facilities.
They have an APR of 200-400%. Yes, these could be problematic if you are right now having low income or no income stream. Loans like provident in Ireland are the most convenient form of borrowing. You get the cash home without moving to the lender or contacting neighbors for help.
What if your income changes and you cannot afford the payments?
With doorstep loans, you do not have to worry about extra charges or fees. However, the lender may charge a penalty or late payment fee if you miss a loan repayment.
What are provident loans?
Provident or Doorstep loans are standard among the citizens of the country. These are unsecured loans where one gets cash help at the doors. In some situations, one can apply for the online facility as well. It is ideal for individuals needing someone to explain the repayments as a 1:1 interaction. These loans offer only up to €1000 as instant cash help at the doors.
The lender’s representative or agent lands at the borrower’s house to discuss the terms. He proceeds with the loan application only after analysing the affordability and need. The borrower shares complete flexibility to reject the loan. If the borrower accepts the terms, the agent provides the money simultaneously.
The interest rates are generally fixed on the loan. Here, the agent reaches the home to get the payments per the loan agreement. The borrower does not have to stress about landing on the lender to pay. However, if the borrower cannot deliver on the decided date, he must inform the lender of the dale a day before.
Why Doorstep Loans Are Popular Among Individuals in Ireland?
Loans like provident help individuals counter emergency requirements without stressing about anything. These are same-day loans that call for nothing but income proof. You may qualify for doorstep loans if you earn above €2500/month. Unemployed individuals may also be eligible by revealing income in the form of benefits or any side income. These loans share the highest approval rate. Here are some other reasons doorstep loans are popular among individuals in Ireland.
1) You never pay additional interest
Though the interest rates on these loans remain fixed for the loan tenure, one never pays extra interest regardless of changes in financial circumstances. You can acquaint the lender with the reasons behind the economic collapse. In case of genuine reason, lenders do not charge anything extra.
2) Ideal for bad and poor credit profiles
Most doorstep lenders deal with individuals having bad and poor credit scores. Because individuals with a low credit profile often struggle to qualify for loans with mainstream lenders. Here, having sufficient income backup can do the rest for you. You do not have to panic about losing the opportunity. As long as you meet the criteria, you may qualify.
3) Do not need any paperwork or documents
Individuals seeking doorstep loans are those who need money at the doors urgently. And when you need quick loans, documentation may seem the most significant hassle. Provident loans eliminate any such inconvenience on the part of the borrowers. You do not have to engage in lengthy forms or attach documents. You need to keep ID proof and income proof handy. Lenders only ask for these two. Id proof help confirm the residential address.
If you are on the electoral roll, you may qualify quickly. Lenders here analyse the duration of the person’s stay at the particular residential address. If you have been residing here for a long time, we approve the application immediately.
4) A Soft credit check ensures affordability
If you have been thinking of losing your credit score post the credit screening, you can relax. Ours is a soft credit check process. We only analyse the critical aspects to gauge the affordability; it does not impact the credit score. What could be better than keeping your credit score intact and getting cash immediately? You can improve your credit score by maintaining regular payments to qualify for better rates. It is ideal from a future perspective.
5) No collateral is required
Most individuals fear applying for some loans owing to the asset requirement. However, doorstep loans do not mandate anything like that. One can pay a short-term loan (12 months) as per comfort and financial capability. The best part of doorstep loans is that you can get a non-obligation quote without missing or losing your priciest asset. Moreover, you can skip the asset screening process, which is time-consuming.
6) 100% legal loans
Individuals often fear entering the debt trap with doorstep loans owing to the competitive interest rate. They are little aware of the fact that these loans are easier to manage. The monthly repayments are very low. If you earn well, you can easily manage. Or, if you struggle, you can spread the loan cost into weekly, monthly, or, fortunately, payments.
These are 100% regulated and legit loans in Ireland that you can apply to counter any emergency without a second thought. If you struggle with repayments, contact the lender immediately to re-schedule the payments or halt them for a while.
7) Requires no guarantor or co-signer on the loan
With the loans being termed as no-credit-check loans and limited eligibility criteria, anyone from student to employed and retired can fetch these.
Exposing financials to a third person may not be comfortable. And getting a guarantor on a loan can seem tiresome and exhausting. Here, in this case, you need a facility that could help you with instant cash without any possible obstacles to approval.
Bottom line
These are reasons people of Ireland prefer Provident loans to other loan facilities. These are the easiest to qualify for. However, always identify the requirement and finances before applying. These are solely to counter emergencies. Only use if it is essential to tap.
Hudson is a graduate of banking and finance and works as a financial consultant at MyLoansBoat. He has a professional qualification to counsel people about money management. At MyLoansBoat, his key duties include shortlisting applications of borrowers and counseling them about credit score improvement, building an emergency cushion, retirement funds, and getting rid of debt. He is an ardent reader of finance books and uses the gained knowledge to help people with their finances. He also writes for the company’s blog on various topics like budgeting, investing, saving, debt management, joint finances, and the like. His aim is to dedicate his life to helping people have a debt-free life.
