Google is full of answers and sources for an instant loan and this actually confuses a person. The person seeking the answer is left in a great pandemonium. This article will give the readers a clear-cut explanation as to what is an instant loan, how convenient is it for students and the mechanism of this easy and most opted financial product.
A brief overview of an instant loan will help the readers to understand its usage as well. An instant loan is a form of unsecured short-term loan which is given to the borrower for a period of 1-6 months. This loan has different categories to cater different needs and requirements of an individual, and these are namely, bad credit loans, payday loans, and quick loans. Now, the question arises that why these are termed as ‘instant’? These loans are termed as instant loans because the time taken for the processing of loan approval, and disbursal of the same is done instantly, unlike the traditional loan system. An individual borrowing a loan doesn’t have to wait for days on an end to receive an update on the approval of a loan status. In this era of digitization, the decision for a loan happens with the slide of a thumb and saves a great deal of time, money, and most importantly the efforts.
Money should never be a problem for people who want to pursue higher education but this situation is very common these days. Students these days are ready to go an extra mile to gain knowledge from anywhere they find, this might demand them to pursue their higher education overseas. And this demand creates an ultimate need for finance. A report released by the Parliament of the UK state that currently more than £16 billion is given as loan to around one million students who are pursuing their higher education. And the value of outstanding loans at the end of March 2018 reached £105 billion. Let’s take a look at the current student statistics in the UK:
1. 2.3 million Students reported being at the UK’s higher education institutions in the year 2016-2017.
2. Almost 700,000 applications were received for full-time undergraduate through UCAS out of which only 534,000 were accepted.
3. A decrease of 7.6% in the number of applications was observed because students faced fees of up to £9,000.
4. And in the year 2018, this again fell by 1% due to the unavailability of finance to pursue higher education.
The Government expects that the face value of loans made to higher education students will be £16.4 billion in the financial year 2018-19.
So, instant loans have proved to be very much convenient for students and come with the flexibility of repayments. The UK market is widely acknowledged for its financial services, so students in the UK are at an advantage of receiving instant funds to complete their higher education. It acts as a bridging loan for the students in need. Though going to a University becomes difficult for many reasons but instant loans are a solution to one of the many problems faced by the students.
A student who is living with other students cannot ask for any financial help from them as every student is cash-strapped at some point in time. And nobody has spare cash to lend. Instant loans for students in the UK helping them to pay the rent on time, buy required study materials and cover other house-mates costs easily. Students who opt for part-time jobs while studying at university can easily pay off this debt when they receive their paychecks. Students who avail this loan can enjoy their summer breaks or the most-awaited break of the year, Christmas! Any loan which is considered carefully can result in numerous benefits.
An instant loan for a student can help them to cover the living expenses, accommodation, food, travel,and every other maintenance cost. Plan and schedule the repayment structure carefully so that there will be no issues during the loan term. It becomes very much crucial to put some efforts on budgeting the loan amount so that a student doesn’t end up spending the cash in the first few weeks of the term. The problem arises if an individual borrowing a loan doesn’t understand the loan thoroughly which includes repayments and interest rates. Therefore, a proper research and budgeting become extremely essential before applying for a loan so that it doesn’t pile up insane amount of interest amount to the original loan amount.
The best thing about an instant loan in the UK is the time period taken for the whole process is very less. So, it can help students in the UK in any financial emergency or crisis and repayment is never going to be a big problem because generally, these loans are short-term and moreover, the amount an individual is borrowing is never too huge that repayment will be a problem. As mentioned above in this very same article that if you are choosing an instant loan and you use it responsibly and carefully, you can gain numerous benefits from the same. Any student aged 18 or above can easily apply for an instant loan online. They have to fill the online application and submit the form to the online broker they have chosen. A decision regarding their loan approval will be received on the screen instantly and if approved, the loan amount will be transferred to their bank account immediately.
A full-time education course needs some extra amount of money for the students to make through the University years. Proper management of finances becomes the need of the hour for them. Instant loans have proved to play a significant role in their lives to cover an urgent or immediate expense. An extra form of financial help has never hurt anyone. The Guardian has reported that 2% of undergraduate students used this form of credit in the year 2015 and the survey was carried out by the National Union of Students (NUS).
On top of that, it has been observed that the amount a student receives from Student Loans is not enough to even cover the basic living costs which means at the end of every month a student runs out of cash for the basic necessities. A survey was done by Student Money Survey state that the average rent per week is £70. The scarcity of finance restrict students to apply for the desired course as the fees for the desired course may be higher and arranging the finance would not be possible. After enrolling in the University, 16% of students take on a part-time job to fund their studies. And many of them are found unable to balance a job and studies at the same time, hence, they are turning towards an instant loan for short amount which is easy and even easier when it comes to repayment.
Young Britons are quite reliant on instant loans to fund their everyday spending. And if someone is still not interested in considering the option of an instant loan, alternatives to that are available. One can visit the university and discuss the financial problems. The University may come to help them in certain ways.