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Personal Loan vs Cash Loan

Cambodia is a fast-developing country and it’s growing at a high speed. In this country, As the report showed, the Credit Bureau Cambodia (CBC) for 2022, released recently, out of the $48 billion disbursed as loans, more than $20 billion was availed by Phnom Penh residents, indicating the scale of businesses activities in the capital. This is where cash loans come in, offering a tempting solution for quick access to funds. Cambodians can apply for cash loans to solve many problems, like covering an unexpected expense or expand their business

But it is vital to know the advantages and disadvantages of cash loans before you make up your mind. Khmer Prosperity Loan brings you a general overview of cash loans, which includes exploring their pros, cons, and things that should be known by anyone considering opting for them in this article.

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Pros of Cash Loans

Cash loans offer several advantages, making them an attractive option in certain circumstances:

pros & cons for getting an urgent cash loan
  • Quick Access to Funds: Cash loans, unlike traditional ones, have a quicker check-up process. It is possible to get money within one or two days that can be used immediately in situations like car servicing and illness. This quick cash access comes in handy when one is faced with time-bound financial responsibilities. With a 10-year experience in Khmer Prosperity Loan, your quick loan will get approved within 24 hours because we are familiar with most of the procedures, loan amounts, and terms.
  • Minimal Eligibility Requirements: Qualifying for a cash loan typically involves less stringent requirements compared to traditional bank loans. Applicants only need to submit the necessary documents online within minutes; this is suitable for all Cambodians who need fast cash loan approval. This can be beneficial for individuals with limited credit history or lower credit scores. For those who might not qualify for a traditional loan due to past credit missteps, a cash loan can offer a chance to access much-needed funds and potentially rebuild their credit score with on-time repayments.
  • Flexible Use of Funds: Cash loans offer flexibility in how you use the borrowed funds. Khmer Prosperity Loan will not limit the purpose of your financing fund so you can use the cash loan for any purpose. This flexibility can be helpful when faced with a sudden expense that falls outside your regular budget.
good reasons to get a personal loan
  • Potential Credit Score Improvement: Responsible repayment of a cash loan can positively impact your credit score. This is because timely repayments demonstrate your ability to manage credit effectively. Cash loans, when used strategically and repaid carefully, can be a tool to improve your creditworthiness to maintain a good credit rating profile for better loan options in the future.

Cons of Cash Loans

While cash loans offer advantages, it’s essential to be aware of the potential negative parts:

  • High-Interest Rates and Fees: Cash loans have a reputation for being associated with high rates of interest and charges. These expenses can considerably raise the overall cost of borrowing. Before taking any action, it’s crucial to compare the rates and fees that various loan providers are offering. With Khmer Prosperity Loan, you don’t have to worry about this problem because you can always get a cash loan with a 6.99 low-interest rate.
  • Risk of Debt Cycle: The ease of access and quick approval process associated with cash loans can lead to a dangerous cycle of debt. Borrowers might rely on them too frequently, leading to difficulty keeping up with repayments and accumulating even more debt. Cash loans should be used as a last resort and only after careful consideration of alternative options. Contact a reliable financial advisor to manage your credit profile at Khmer Prosperity Loan, not only as a loan provider but also as a professional consultant to remind you if it’s a suitable phase to get the loan. 
  • Negative Impact on Credit Score: Missing repayments on a cash loan can severely damage your credit score. This can make it difficult to qualify for future loans with favorable terms. A damaged credit score can have a ripple effect on your finances, impacting your ability to secure loans for things like mortgage loans or car loans. Remember, always understand your actual borrowing needs, and don’t exceed borrowing just because it’s easy and convenient to get funds.
  • Limited Borrowing Amounts: The amount you can borrow through a cash loan is typically limited compared to traditional loans. This might not be sufficient for significant financial needs. Cash loans are best suited for smaller, short-term financial emergencies.

Case Studies

As a 10-year established financial service provider, we’ve met more than 100 visitors who want to get fast loan approval on the next business day. After the comprehensive consultation, we have a clearer understanding of why Cambodians need quick cash urgently and some of the hardships.

Case 1

A new report has found that 28.1 percent of Cambodians borrow money to pay for healthcare in Cambodia. There’s a case from Soth, a single mother, who faces an unexpected medical expense bill. instant cash loan is used to cover Soth’s mother’s urgent surgery costs, and that’s the only way to save her mother’s life.

She doesn’t qualify for a traditional loan due to past credit issues. Soth thinks there’s only either to take a higher interest online cash loan or leave her mother in the hospital until she finds us. She said: “I found Khmer Prosperity Loan in Google and saw we state 6.99% low-interest applies to all types of loan. If it’s true, I’m capable of paying loan repayments effortlessly”. It’s how she became our existing customers by getting the first easy cash loan from us.

Case 2

Vuthy experiences a temporary financial setback due to reduced work hours. He relies on a cash loan to cover his essential expenses. While the quick access to funds helps him meet his immediate needs, he finds himself needing another cash loan the following month. This cycle continues, and Vuthy struggles to keep up with the high repayments, accumulating significant debt. However, utilizing their services too often or without a proper repayment plan can lead to a dangerous debt cycle.

pros and cons of income-driven repayment plans

Use Loan Calculator To Calculate APR

Khmer Prosperity Loan suggests you make a calculation before starting to process your application. The use of a loan calculator can be an important tool for evaluating the effective cost of borrowing. In Cambodia, where financial literacy is on the rise, it is essential to know the Annual Percentage Rate (APR).

Such information as the principal amount, interest rate, and loan term will disclose how much your loan will eventually cost you in total, depending on the loan amount. On our website, you can use a free loan calculator to calculate the installment within your financial capability. Loan calculation is a necessary skill for Cambodians who want to run businesses themselves, so make sure that you are able to calculate business loans and SME loans clearly.

Loan Documents Required

Since we understand the pros and cons of a cash loan, what should we prepare to get the approved funds? These loan documents serve to verify the borrower’s identity, income, and other relevant information.

list of documents required for a home loan
  • Identification Proof: This may include a valid passport, national ID card, or driver’s license to confirm the borrower’s identity.
  • Proof of Income: loan providers often require proof of income to assess the borrower’s ability to repay the loan. This may include recent pay stubs, bank statements, or tax returns.
  • Residential Address Proof: Documents such as utility bills or rental agreements can serve as proof of the borrower’s residential address.
  • Employment Verification: Some microfinance institutions may require verification of employment to ensure the borrower has a stable income. This could involve a letter from the employer or contact information for the employer.
  • Bank Statements: loan providers may request recent bank statements to assess the borrower’s financial health and transaction history.
  • Collateral Documents: If the loan is secured with collateral, such as property or vehicles, documentation related to the collateral may be necessary.

How to Get Quick Cash Loan Online Within 24-48 Hours

Getting quick cash loans online within a short time frame is possible with certain loan providers. Here are the steps to follow:

how to find the right fast cash loan for you
  • Research online loan providers: Start by researching reputable online loan providers that offer quick cash loans. Look for loan providers with positive reviews and transparent terms.
  • Check Eligibility Criteria: Review the eligibility criteria for each loan provider to ensure you meet the requirements. Khmer Prosperity Loan has one of the easiest eligibility requirements to fulfill in Cambodia’s financial market: being 18 years old or older and having a stable income to cover every payment schedule.
  • Submit an online application: Complete the online loan application form provided by the loan provider. It’s on the Khmer Prosperity Loan website; you can fill it out anytime, anywhere, or make a phone call to us for a free consultant service.
loan origination process
  • Upload Required Documents: Upload any required documents, such as identification proof, income verification, and bank statements. Ensure all documents are clear and legible.
  • Review Loan Terms: Carefully review the loan terms, including the interest rate, repayment schedule, and any fees associated with the loan. There are many different terms that are harmful to borrowers, like sharing personal data with third parties or non-changeable loan payments.
  • Loan Offer: Accept the loan offer from the loan provider if you are happy with the loan terms. This may involve electronically signing the loan agreement.
  • Receive Funds: Once your personal loan application is approved, the funds will typically be deposited into your bank account within 24 to 48 hours.
Personal Loan vs Cash Loan

By following these steps, you can secure a quick cash loan online within a short time frame without facing loan scams. However, it’s essential to borrow responsibly and ensure you can afford to repay the loan according to the agreed-upon terms.

Conclusion

Cash loans can offer a valuable financial tool when used strategically. By carefully weighing the pros and cons, understanding the terms and conditions, and exploring alternatives, you can make an informed decision that aligns with your financial situation. Select your preferred loan provider in the way that we mentioned in the article, or we suggest you visit Khmer Prosperity Loan to get a cash loan without extra inconvenience, and problems. We promise every client that you’ll receive a pleasured loan financing service here.

Frequently Asked Questions (FAQs)

Q1. What is a cash loan?

A cash loan is a short-term, unsecured loan typically used for immediate financial needs. It’s obtained quickly with minimal requirements, often repaid on the borrower’s next payday. However, it carries high-interest rates and fees.

Q2. How can I earn $1,000?

You can earn $1,000 through different methods such as freelance work, selling goods or services, participating in online surveys or market research studies, tutoring, or taking on temporary part-time jobs.

Q3. How to get $500 instantly?

To get $500 instantly, consider options like payday loans, cash advance apps, or borrowing from friends or family. Ensure you understand the terms, interest rates, and repayment requirements before proceeding.

Q4. Is a bank loan cash?

Yes, a bank loan can provide cash to borrowers. Once approved, the loan amount is typically deposited into the borrower’s bank account, making it available for immediate use.

Author
Vannak Sen

Vannak Sen is Khmer Prosperity Loan's dedicated financial advisor. His expertise lies in guiding entrepreneurs through the loan process with ease. Vannak’s articles offer simple, actionable advice, helping your business navigate the financial landscape and thrive. For personalized, clear, and practical strategies that resonate with the Cambodian business community, rely on Vannak’s insights.

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