Short Term Loans- Getting the Cash Right When You Need It

There are times when you face monetary crisis or need immediate cash in hand, but no one comes to your rescue when you need finance the most. This is when short term loans come handy. To meet your capital requirements, you can use this convenient money borrowing option. Usually such loans come with a short repayment time i.e. you need to pay the money back in less than twelve months’ time. A few things to know about these loans This form of loan is quick and easy and you don’t need to pay too much interest on them. It is a good option to go for to meet all your personal and business capital needs on emergency basis. Short term loans come with a repayment period that varies from a month to twelve months. But in most of the cases they come with a repayment deadline of three to six months’ time. These loans are usually low value as in not huge amounts as their purpose is to meet immediate monetary needs and hence small properties like vehicles and others can be kept as mortgages for obtaining the loan. About rate of interest Another aspect of taking these loans is easy interest rates. They usually depend on three things- the total sum of money borrowed, property kept as mortgage or guarantee of loan repayment and loan repayment deadline. The interest rates vary from one lender to the other and greatly vary according to the above mentioned three points. As these are short term loans the interest to be paid is for only a few months and they don’t total to a lot of money like conventional loans. Key benefits of taking short term loans over conventional long term loans: There are three chief benefits of such of loans:

1. Quick and easy loan settlement: The best part of short period loans is the fast loan settlement. You get the cash in less than 24 hours. As the deadline of repayment is short, the money is released in no time. Long time loans take too much of validation and processing time, which can be very crucial in monetary emergencies. In sudden situations where cash is required within very short period of time, long term loans can be useless and small period loans can save you from any such financial crisis.

2. No credit history involved: Short term loans are not sanctioned based on your credit history. You can still do it just without credits. Many people who go for such loans have absolutely no credits at all. Another key benefit is that you don’t need to put gold, home or other real estate properties as mortgagees. A simple car or other small assets will work fine as collateral. This is mostly because the loan amount is small and the liability of the lender is also less and he has small assets as collaterals from the recipient.

3. Less fees implied: In case of long term loans you need to pay your fees or interest amount for a longer duration. The final amount that you end up paying will be substantially higher.  In case of short term loans the fees are implied for a very short period of time say for three or six months, so the fees are comparatively very small and will not hurt you at all. If you are looking forward for business expansion, home renovation or you are facing low cash inflow then taking such a loan is the best way to go.