Short Term Loans Explained
Short-term loans are a means of borrowing various amounts of money for a small duration of time, usually a couple of weeks or a few months. Most people opt for these loans because they offer a flexible payment solution. Some moneylenders offer a 14 to 30 days repayment time for short-term loans, while others may provide nearly 3 months for the repayment of the loan. The money is then deducted from your account at the end of the time duration of the loan. The aim is to provide people with an easy means of borrowing money when needed, while avoiding financial stress.
On the other hand, long-term loans are those that are taken for large sums of money for longer time durations, usually 5, 10 or 20 years. The repayments of these loans are made each month or year. Long-term loans include all types of personal loans, car loans and home mortgages, etc.
Emergencies and Short-Term Loans
Emergencies are sudden occurrences that are unpredictable and require immediate resolution. However, for emergencies like urgent home repairs and accidents, immediate funding is required in order to make the repairs and pay the medical bills.
The best option when you are in need of money for emergencies is to contact family members, as they are reliable sources of borrowing money. However, in their absence, the next best solution is to opt for close friends who may be able to help you in your financial distress.
Alternatively, some people also save money for a rainy day, just in case of such emergencies, and can use this amount in times of urgent need. Experts suggest that every individual should keep at least £1000 in their ‘rainy day’ account for emergencies. Unfortunately, most of us are unable to save efficiently for an unexpected day in the future when we may require urgent cash at our disposal. We simply cannot see ourselves in dire situations and hence, we do not plan our money and savings accordingly
It is in such situations that people are then in need of short-term financial solutions that allow them to tackle the emergency and repay the loan at their next payday. In today’s technological age, time is of the essence. People want quick cash in a matter of minutes with easy to apply procedures. This is especially true when they are in urgent need of money. Thus, short-term loan solutions offer them the opportunity to manage their financial needs immediately with same day money transfers.
For this, you can choose to go to your bank and file for a short-term finance loan, but bank loan procedures are time consuming, and emergencies require immediate funding. If you are in an emergency, you will not have the time and patience to drive to the local bank and fill the long and complicated forms to apply for the loan. Even after the application form have been filled, most banks are crowded and you will have to wait in line for your turn while your urgent needs take a backseat for the time being. This is not how you will want to manage your urgent needs. Thus, although bank loans are a good option, they cannot be chosen in times of emergencies.
Hence, as people require urgent and immediate cash for emergencies, more and more people are opting for online short-term loan solutions. These loan solutions are offered by many moneylenders in retail stores as well as on online money lending websites. However, online loan applications give you the added convenience of applying for your loan, no matter where you may be present.
Additionally, online loan applications are easy to fill, and can provide you with a quick and same-day cash transfer; allowing you to manage your emergencies with ease. The best part about online short-term loans is that you can apply for them from a variety of screens. This means that you can obtain your loan via laptops, smartphones, or any other mobile devices that are in your possession.
Kinds of Short-Term Loans
- Online Short-Term Loans – In these short-term loans, the entire application and correspondence process between the moneylender and the borrower takes place online. The funds are then transferred electronically to the customer’s bank account. Thus, you only need access to the Internet to apply for these loans from your laptop, tablet, smartphone, or desktop computer.
- UK Based Short-Term Loans – Within the UK, the eligibility criteria for short-term loans is simple and easy to fulfil. The terms include that a person must be living there legally, must be employed, and should be present within the UK for the entire loan duration. These loans are provided in pound sterling to residents of UK, Scotland, Ireland, and Wales.
- Cheap Short-Term Loans – The true cost of a loan includes not only the amount that has been borrowed but also, the amount of interest that is to be paid on it. A cheap short-term loan is a loan that is provided to customers at a less than normal APR. This means that the loan has a lower interest rate, which makes its overall cost cheaper as compared to its competitors. Thus, some money lending websites can actually provide you with a short-term loan that is one of the cheapest loans available online with an APR of just 993%.
- Instant Short-Term Loans – When you apply for a short-term loan, most moneylenders will immediately transfer the funds to your account to cater to your urgent monetary needs. However, some of them prefer to verify your details via phone before transferring the money, but the transaction is usually processed on the same day.
Applying for short-term loans is easy, simple, and completely online. Simply fill the available online forms in 5 minutes and the loan website will give you a decision promptly if you have been accepted for the loan. The team of professionals working for the money-lending site will then verify your application and transfer your funds within an hour.
Most moneylenders are committed to responsible lending. This is why they will perform a number of affordability and credit checks before providing you with a loan. In general, they will verify your salary and payment capability to determine if you will be able to repay what you borrow and speak with you directly before finalising the transaction.
No Penalty on Early Repayment
One of the best benefits of short terms loans is that there is no penalty fees if you repay the loan early. Moneylenders understand that you want to be rid of your loans fast, and this is why they do not charge you extra fees for early repayments. They also will not add the interest of the remaining days to your dues.
Lending with a Sense of Responsibility
Aside from the credit checks that moneylenders make as part of their responsible lending commitment, they also verify the following details about their customers:
- More than 20 years old
- Resident of the UK
- Currently employed with a minimum salary of £750 per month
Reviews of Online Short-Term Loans Websites
Are you in need of a short-term loan? Searching for reliable websites from where you can obtain the money you need to manage your urgent needs?
We offer credible and unbiased reviews of some of the top short-term loan websites available online, so that people who are in urgent need of cash will know where to go to obtain a short-term loan.
Hence, if you are in need of a short-term loan; read our customer reviews, and find the best loan site for your needs. Happy Reading!