Short-term loans are basically provided to an individual for a very short tenure that usually ranges from 15 days to 1 year. These are beneficial for customers who are unable to get loans for a longer tenure from a bank or lender. Short term loans are generally unsecured, meaning that you do not have to provide any money or property as security for the loan amount. Short term loans are also known as short-term instalments or short-term finance. Most short-term loans do not require a good credit score and customers with no credit score are also eligible in some cases.
Advantages of a short-term loan
1 Lower total interest paid:
When an individual opts for a short-term loan, the outflow of money towards the paying of total interest is much lower in comparison to a long-term loan. This makes a short-term loan much cheaper than a long-term loan. In a long-term loan, though the interest rates seem lower, but one will still be paying more interest as the duration of paying the loan is much longer. So, the total interest paid in a short-term loan is much lower than in the case of a long-term loan.
2 Shorter tenure for quick repayment:
Since a long-term loan is a long-term financial burden to carry, it can restrict your monthly cash for a long period of time, thereby hindering other expenses to be paid. Short-term loans are easier to get approved can be repaid very fast, thereby ridding the individual of the financial burden sooner.
3 Score builders:
Short-term loans can act as good credit score builders. If an individual has a bad credit score or does not have a credit score, they can opt for a short-term loan and repay it on time and improve their credit score with ease. This is because the lender usually just checks your bank statements and some social media accounts like LinkedIn to access job stability and income.
To apply for a short-term loan, click here.