Among the several varieties of loans in the market, the most preferable one is short-term personal loan that is availed by persons for a stipulated amount of time and hence is paid fully in instalments with interest, till the loan repayment ends. Personal loans are therefore also called instalment loans.A person seeks a private loan for various reasons, the most prominent reason being home improvement or debt consolidation. Personal Short-term Loans can therefore, bring instant cash, fulfilling the demands that were perhaps pending due to insufficient funds.
Characteristics of Short-term Personal Loans:-
They can be applied online instantly with simple time saving formalities, with little effort. The loans also get approved fast within 24 hours, on fulfilling all the eligibility criteria.Short-term personal loan is a quick method to arrange cash advance loan for a number of financial needs. However, borrowers need to be regularly employed or have a steady income so as to repay the lending institution within the stipulated time.
Short term personal loans secured from a lending agency are of two kinds- Secured and Unsecured. Secured short-term loans require collateral to be placed (i.e., pledging of an asset against the loan amount) by the borrower before taking a loan, while Unsecured short-term loans do not require any collateral to be placed. Unsecured loans generally carry higher interest rates to cover up the risks.
The loan amount varies according to different lending institutions. The maximum amount is usually qualified on the basis of an borrower’s capacity to repay the loan and the interest rate is usually fixed at 8% p.a.This type of loan requires no credit checking of applicants. So even borrowers with poor credit worthiness can opt for these loans, but they are charged higher interest as compared to those with good credit history.
There are numerous benefits for short-term personal loans because they help us to rearrange substantial amount of loans for our entire immediate cash wants.Borrowers can search various websites to avail short-term loans online but before that they need to know the loan type and its terms and conditions.