Business dealers who are in the frequent race of making transactions have to make many effort to execute the require plans. There are times when they fall short of money and in that case they have to think upon some plan to pay cash. No business house can afford to wait for a longer period in case they don't have solid cash. In that case they can go for credit facilities that are provided by banks and many other privately owned firms. Cash advance is one among them that allow a borrower to take cash with some rate of interest for a valid period of time. This makes it easy to pay for those things that are required to ensure proper growth of any entity.
It provision is available to those who hold some credit card. The cash is advanced either by the credit card issuer or there are many firms that have started giving these services. The person who applies for loan is allowed to withdraw the same sum of money from their bank account or the same can be swiped out with the help of ATM card. Thus, the process is very simple but the only condition that makes sure about the loan is the credibility of the borrower with the bank. The limit within which the money is advanced also depends upon the limit of a card as well as the regularity of the customer to pay monthly credit card bills.
Thus, the transaction that is paid in this form falls under the category of credit card transaction as the credit card plays the major role. Also the principal amount is paid at the time when the bill of card is cleared. No customer can evade the fact that revolves around the payment of principal amount.
At the time of payment of loan the amount is always more than the actual cash that is given on loan. That addition is the interest that is charged by the lender and it constitutes the profit. The interest rate is calculated as per the market norms or sometimes they are determined by the lender keeping in view the rules of credit card transactions. But it is very much clear that every debtor has to pay more than the cash they have asked for. It can be stated among the most expensive mode of loan as the interest factor is generally high.
It provision is available to those who hold some credit card. The cash is advanced either by the credit card issuer or there are many firms that have started giving these services. The person who applies for loan is allowed to withdraw the same sum of money from their bank account or the same can be swiped out with the help of ATM card. Thus, the process is very simple but the only condition that makes sure about the loan is the credibility of the borrower with the bank. The limit within which the money is advanced also depends upon the limit of a card as well as the regularity of the customer to pay monthly credit card bills.
Thus, the transaction that is paid in this form falls under the category of credit card transaction as the credit card plays the major role. Also the principal amount is paid at the time when the bill of card is cleared. No customer can evade the fact that revolves around the payment of principal amount.
At the time of payment of loan the amount is always more than the actual cash that is given on loan. That addition is the interest that is charged by the lender and it constitutes the profit. The interest rate is calculated as per the market norms or sometimes they are determined by the lender keeping in view the rules of credit card transactions. But it is very much clear that every debtor has to pay more than the cash they have asked for. It can be stated among the most expensive mode of loan as the interest factor is generally high.