Short term loans are generally given for a time period of one year or even less than that. These are essentially one time loans that come in handy when you are not able to get a loan from the bank for a long duration. In the short term loans, the interest is paid on the main advance amounts, and the tenure for repayment is shorter than the other kinds of loans. These loans are made available to the businesses and customers, and these are generally provided by the private finance companies.
The Top Features Of Short-Term Credits
The short-term loans are different in their features as you go from one lender to another. These loans also differ based on the country that you are staying. The following are some of the features of short-term credits.
- You can apply for these loans as a business or as an individual.
- These loans can be availed through online as there is not much paperwork involved.
- Most of the lenders give the loans even to those with bad credit history.
- They are approved quickly and mostly need one or two days and not more than that time.
- The security of the loan depends upon the lender that you have chosen
- The repayment period varies from one organization to the other. Generally, there is a repayment period of almost four to five months. For some lenders, the repayment period is like less than two months.
Availing Short-Term Loans From Private Lenders
Most people opt for private lenders when they look for short-term loans. There are certain advantages of getting a loan from private lenders. It is a given that the private organizations have a higher interest rate, but they also make getting the loan easier. The loan is easily approved thanks to the lack of emphasis on credit history and the likes.
Going to the bank also means that you will get delayed in actually receiving the money. In the short term loans like the bridging loans, most of the work is done online and hence there is very minimal effort needed to be put on your part. You get access to the money faster than what you would have got from a bank. The stringent restrictions that you see in case of banks are totally absent when you apply for the loan to a private company.
It is important to mention in this regard that short-term loans must only be taken to meet the immediate expenses. This is a big financial decision as all these loans are really expensive, and you need to carefully consider all the options before actually applying for the particular loan.