What Options Exist Instead of Provident Loans in Ireland?

Provident loans in Ireland no longer exist. These loans were provided by the Provident Company, which had shut down on 31 December 2021. The company was quite famous for providing doorstep loans, but over time, it suffered a lot of backlash because of high-interest rates that eventually led to mismanagement.

Well, if you are looking to get Provident loans now, you cannot apply for them. But the good news is that you can apply for loans like Provident in Ireland.  Provident loans were generally famous among bad credit borrowers. They were small loans that you could apply to fund small emergencies.

The repayment length of these loans used not to be so big. Because of the small borrowing sum, borrowers had to clear their debts on the due date in full. If you are looking for such small loans, you can seek the following alternatives:

• Bad credit loans

Bad credit loans in Ireland are a good alternative to Provident loans, and the good thing is that they are way cheaper than them. Further, you can take out a more considerable sum depending on the policy of the lender. Some lenders might allow you to settle the debt in instalments. If the amount is so small, you can repay the debt in weekly instalments.

This will make it more manageable. When you borrow a larger sum, the repayment length could last for up to six months. On-time payments of monthly instalments will help you build your credit score, provided your lender informs credit reference agencies of your credit score.

• Unemployed loans

To qualify for a bad credit loan, you should have an income source. Unfortunately, there are circumstances when you do not have an income source. If you are unemployed, you will be reliant on your emergency corpus and unemployment benefits. It can be quite tricky to get by when you come across some emergency expenses.

Getting a loan when you are unemployed can be quite tricky, but if you are on benefits, there are chances that some lenders will loan you to fund unexpected expenses. These loans are known as unemployed loans. The amount is small, so you will have to settle the dues on time in full.

These loans are not aimed at improving your credit score as they are not paid down over a period of months, so a lender cannot detect your repaying capacity despite the ups and downs in your financial circumstances. Unemployed loans could carry higher interest rates, yet they are lower than that of Provident loans.

• Doorstep loans

You can also use doorstep loans in place of Provident loans. A few lenders provide the doorstep service when you need a small amount of cash to fund small unforeseen expenses. There is no particular condition to use this service, but these loans are generally popular among the unemployed and the retired.

The application procedure for these loans is the same as any other loan. You will have to put in the application for the loan, with the only difference being that the lender’s representative will call in on your home at a scheduled time to hand in money. The collection will also be done on your doorstep.

Doorstep loans can be more expensive than unemployment loans and bad credit loans, and this is because they are subject to high fees. As the representative has to hand in and collect money on your doorstep, they will charge extra fees.

Doorstep loans are small, so there will be only one-off payment. However, a few lenders might ask you to clear the payments in weekly instalments. This will add up fees, and your debt will cost you even more money.

• No credit check loans

Another alternative to Provident loans is no credit check loans. As the name suggests, these loans are not subject to a credit check. Those who have very poor credit scores seek after these loans. When you apply for a loan, a lender will run your credit check.

This will result in hard search inquiries that pull your credit points. The impact will stay on your credit file for two years. If your credit score is already poor, you will certainly avoid having a hard credit check because this might push your credit score to a very poor credit score range. No credit check loans are quite challenging. They can be very expensive because a lender lends you money without checking your credibility.

These loans are too risky as well. You will be required to settle the debt on time in full. If you fail to clear your due, you will end up falling into an endless circle of debt.

• Quick loans

Quick loans are a type of emergency loan. You can get them instantly. You will get money within a few minutes in your bank account as soon as the process is done. The feature of these loans is also the same as other loans. You will have to pay back the debt in full on the due date.

Quick loans can be quite expensive. Make sure you carefully analyse interest rates and your affordability. Some lenders offer these loans without a credit check, so they can be even more expensive. Be careful about that.

The bottom line

Provident loans in Ireland no longer exist, but there are several alternatives that you can seek. These loans include but are not limited to quick loans, unemployed loans, bad credit loans, doorstep loans and no credit check loans.

All these small loans have the same features. They are ideal to fund emergency expenses. They can carry high-interest rates, so make sure you use these loans only when you can repay the debt on time. Understand their upsides and downsides before you apply for them.