If you are having temporary cash flow problem or facing a sudden financial emergency
and need money to meet your needs immediately, Short Term Loans are just for you. These loans are taken out with the intention of filling the gap between when you require money for some specific unforeseen purpose and when actually you can afford it.
Short term loans What it is
Short term loans includes payday loans, personal loans or any other form of borrowing for a short timespan. You can use these loans in business to help in cash flow or for personal purposes. Though there are many advantages of taking out a short term loan, the drawbacks can be steep too.
Eligibility for short term loans
You can qualify for a this loan if you meet the following criteria:
* You must be employed and have a steady source of income.
* You must have a bank account.
* You must be 18 years and above.
Short term loans Pros
The following are the advantages of taking out these loans:
* No credit check Most of the time, especially for payday loans, no credit check is performed to approve these loans so you can qualify for these loans even if you have a bad credit score.
* Fast approval You can get this loan within a very short notice, provided you meet all the criteria.
* All purpose loan You can take out these loans for any purpose. There are no restriction in terms of what the amount borrowed should be used for.
* Simple procedure The loan procedure here is very simple and quick. It requires only your name, address and bank details.
Short term loans Cons
Some of the drawbacks of these loans are:
* High interest rates These loans come with a very high interest rates. It is the most expensive form of borrowing.
* Rigid terms These loans have rigid terms and set monthly payments. If you miss your payments even once, it'll affect your credit rating negatively.
* Short term remedy It is important to remember that it is only a short term remedy for your financial problems.
Short term loans are easy to get and can be really helpful when you have to deal with any unforeseen financial emergency. However, weigh out the benefits and the drawbacks before you apply for a loan.