As the name suggests, direct deposit personal loan is that loan which is deposited directly into your account. In other words, once your loan is approved (which usually takes a few hours) then instead of providing you with a cheque of the loan amount, the lender financial institution deposits the loan amount straightaway in the account you had mentioned on your application form.
It might be worthwhile to note that for all practical purposes, direct deposit personal loan is nothing but an advanced salary – though not from your employer, but from a third party. What it means is that once you receive your next paycheck you will be required to pay back your direct deposit personal loan. It also implies that typical duration for such a personal loan shall be a fortnight. Since you are getting an advanced salary, this type of loan is also referred to as early personal loan.
Renewal of Direct Deposit personal loan
Even though you are required to pay back your loan on receiving the next salary, it does not mean that you cannot take yet another direct deposit personal loan, or in other words, it does not mean that you cannot renew your loan. Most of the loan companies do allow renewal of the loan though the terms and conditions of such a renewal shall be dictated by the degree of comfort of the relationship between you and the loan company.
Application Process For Direct Deposit personal loan
Due to the internet, application process for a direct deposit personal loan has become very simple – the reason why it is often also called easy application personal loan. Required application can be filed online. All you need to provide are your personal details including information on your (remember it is like an advanced salary) employment and your bank details. Of course, you also need to specify the amount of loan being sought. This loan is usually provided for small amounts (typically $1000 or less).
What You Need to Know before Availing Direct Deposit personal loan
Since this loan is not secured by any collateral, it typically commands a very high rate of interest. So on applying for such a loan, you should be prepared to shell out the required amount of interest. The best you can do is to check terms and condition from a couple of loan companies before boiling down to the company from which you would like to take the direct deposit personal loan. Such a comparative study shall help you to get the best available deal in the market.