Instant loans and how they work

Instant loans have been available now for well over a decade and come in a whole host of different shapes and sizes. Whether you are looking to borrow £100.00 or as much as £500.00, instant loans may be able to help. Instant loans are also known as short term loans or payday loans to name a few examples. Instant loans has become the adopted name over the years given the nature in which these loans operate. Generally, these loans are quick and can be an effective route to a small loan. This is mainly thanks to the fundamental nature of how an application is submitted and this is via an online application form. The result of this is that consumers can apply for a loan and when it is needed and are not restricted by specific operating hours. Most lenders operate applications which can be accessed 24/7 meaning customers can apply as and when is suited to them and their needs.  

Given the fact that instant loans are accessible via online based applications, there is an ability to obtain a small loan in no time at all. That is not to say that the process for doing so isn’t structured and based on specific checks. In fact, lenders of instant loans conduct a number of important checks as part of their approval process and ‘speed of application’ can be delivered thanks the use of electronic checks to do so. Electronic checks in this context refer to what is commonly known as a Decision Engine which stores all the rules and requirements of the lender in order for the applicant to be successful. This could be relating to the customers age, income, employment status and of course credit worthiness to name just a few examples. A Decision Engine is in fact a very complicated resource and is founded on knowledge and understanding of the lender which has effectively be programmed into this electronic checking tool. This allows the lender to assess the customers instant loans application in a timely and effective manner.

It is important to reiterate that the speed of application is not the most important concern of the lender, the speed of the application is simply a by-product of an effective Underwriting procedure. There are instances when the application processing time can be extended and this will be in cases when the Decision Engine cannot fully decide whether the loan request is suitable or not. In such cases the application concerning quick loans will only be progressed as a result of further investigation or additional documentation to support the application. This could mean a call being made to the customer or a request for a document such as a Driving License or Bank Statement. In such cases the speed of the application will be dependent on these additional checks being passed and instant loans lenders will not by-pass these checks simply to decrease the time it takes to reach their final decision concerning the success of the application.