What Are Doorstep Loans?
Have you ever needed an urgent loan but would prefer it if the lender collected the repayment from your doorstep in the form of cash? Well, you're not the only one. A specific type of loan called a doorstep loan is designed for this purpose and such people.
A doorstep loan, or home collected personal loan, is originally meant to solve short term financial issues. So, if you ever need money to cover an emergency expense that you can pay off in a few months and would want to avail the convenience of returning it from your home, this here is your cue to go for a doorstep loan.
Doorstep loans are nowadays processed online as well. If you wish to reap the benefits of a doorstep loan but without the traditional physical procedure, you can choose to apply for the loan, receive money, and repay it online directly through a lender or an online broker.
How Do Doorstep Loans Work?
Before you apply for a doorstep loan, you should have sound knowledge of how it actually works.
First, you search for a loan company or organisation that you find suitable. An important factor to consider while looking for doorstep loan companies is to make sure that your potential lender is authorised. Otherwise, you might become a victim of an illegal scammer trying to take advantage of your situation.
After you’ve decided on a company, an agent will pay a visit to your home or contact you and discuss the entire potential deal. Usually, the agent brings all the necessary documents with them so that if you reach an agreement, you can complete the paperwork then and there. If your application calls for online processing, the lender will handle these steps digitally.
After agreeing on the details about the loan, the same agent will give you the loan amount and then come over weekly or monthly, depending on the repayment terms, to collect the repayments. For online processing, you can get the loan deposited in your bank account and transfer the repayments or allow the lender to automatically deduct the money from your bank account on a specified date.
Why Consider a Doorstep Loan?
Doorstep loans are a fast, convenient, and hassle-free option for a number of reasons. Here is a list of reasons why you should consider a door-step loan:
No Bank Account Needed
Where other loan types require a valid bank account as one of the factors for eligibility, you may not need one for a doorstep loan depending on the lender. An agent will visit you at your desired address and hand you the money. Repayments are collected the same way.
Doorstep loans, whether you’re applying for one online or physically, are quick in the process. If your loan request gets approved when the agent comes over to verify details, you can receive the money right there. Online doorstep loan requests review applications and deposit the money on approval within a few hours or days.
Bad Credit Rating is Workable
Doorstep loans, mainly those offered by online lenders, consider other factors along with a hard credit check. So, even if your credit rating isn’t on the good end, you can still apply and, chances are, get approved as well if the lender thinks you can repay the loan timely.
Suppose you’re not a particular fan of the online loan system. In that case, a doorstep loan allows you to get a personalised service with an agent physically coming over to give the loan and collecting repayments.
Features of Doorstep Loans
Doorstep loans are the ideal solution for anyone who doesn’t own a bank account or prefers a personalised service and needs an immediate short-term loan solution. We bring a network of UK’s trusted lenders on one platform for you to choose one that's most befitting to your loan requirements.
Receive Cash In Hand
With cash in hand loan, you can apply for a loan and receive the money physically on the spot. You may not own a bank account or would prefer to get cash on the spot rather than receive the deposit and withdraw it.
Whatever the reason, anyone could get into financial trouble at some point and need to borrow a loan. In times like this, cash in hand comes in particularly handy.
Choose Between Online or Physical Process
A type of traditional lending method, home credit loans are still a feasible method to borrow money. You can either apply online or set up a face-to-face meeting with a lender, and they’ll send over an agent.
Two-Way Repayment Method
Home collections loans come with a two-fold benefit of receiving a loan in the form of cash and the ability to repay it weekly directly to the agent who comes over to collect it. Of course, you can choose to receive a deposit and repay the lender directly into their bank account.
We Offer Doorstep Loans Alternatives
If you require temporary financial aid, short-term loans for up to £1000 and repayment within 6 months will work for you. However, every borrower has a different set of requirements, such as the amount you need to borrow, the repayment period, and the repayment terms.
Think you need to understand and learn more about other loan types as an alternative? At Fast Payday Loans, we can help you find the right loan type for your needs. We offer doorstep loans alternatives with many advantages.
Our reputable lenders are officially authorised by the FCA and strictly follow their rules and regulations. Your consumer rights will be in their best interest when offering a loan. Meanwhile, if you’re specifically looking for a bad credit solution, a doorstep loan can let you borrow money in that case also.
You will be shown the detailed charges and interest rates from UK direct lenders before the loan agreement. While the lender decides the repayment period and terms, you can compare the offers and select the best one. Furthermore, we can assist you in finding another loan type with longer instalment plans if the short-term duration of doorstep loans doesn’t work for you.
How much would you like?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
Frequently Asked Question
Are doorstep loans legal?
Doorstep loans are legal, but what you need to ensure before settling on one is that the lender operates under FCA authorisation. This authorisation guarantees consumer protection and that the lender is abiding by the rules and regulations set for doorstep loans in the UK.
Can I apply for a doorstep loan with bad credit?
Even doorstep lenders need to perform a hard credit check before approving a loan request. But bad credit ratings shouldn’t stop you from applying. Doorstep lenders weigh in a multitude of factors besides credit rating, including sustainable income, making approvals easier for those with bad credit history.
Are doorstep loans safe?
Generally, doorstep loans are equally safe as any other type. Do your research and find a reputable lender authorised by FCA and ideally CCA, too. It’s an additional step, but it ensures your safety and rights as a borrower in the UK.
What's the disadvantage of doorstep loans?
One of the disadvantages you need to consider before applying is that they’re only preferable if you need to borrow small amounts up to £1000. Secondly, there’s a high-interest rate due to this loan's urgency and short-term period.