Budget planning for our own personal finance demands is one of the toughest moments, which involves many pains both mentally and officially. In order to manage such cases, short-term loans are the best choice.
Short-term loans, in other term as short-term cash loans are the one where the borrower can avail it in the shorter period and must repay it soon, hence the loan tenure will be closed in the shorter time, say for at a minimum of 1 year or less than even 1 year, click for info. Wherein, such quick turn-around time works very fast in loan applying process, loan approval process, and finally, the requested loan amount will get an easy transfer into the applicant and/or the borrower’s account immediately through online mode. It is actually a big relief to those who are in needed line, but of few cases with bad credit, history goes on with issues.
Most probably, you can find private sectored financial firms providing short-term business loans, wherein they are of unsecured, however, the cases may vary for firms to firms.
Features of short term loans
Short-term loans come with n number of features, which may actually vary from firms to firms, and be varying while comparing with one is USA to one from Canada or UK.
Appending below are some of the common features:
- Short term loans can be applied as an individual or as a group for any business start-up
- Some short-term loans providing firms may set a rule of approving the loan for only those who have a good credit history, but on rare cases, there are few financial firms who approve loans for the applications that have bad credit history even
- Such short-term loans require only less paperwork, wherein the applicant need not be run here & therefore to be submitted documents
- Depends upon the lender, such short-term loans could be of secured or unsecured
- Certain financial firms or banks offer short-term loans with the repayment tenure at a minimum of 60 days to 120 days maximum. That is total of some 4 months approximately
Types of short-term loans
In principle, loans that come with interest rate of excessing 100% are actually non-existent. Short-term loans can be called as personal loans, short-term loans for SME and even as bridging loans in some firms.
Appending below are the types of short-term loans in various terms:
- Personal loans
- SME Short term loans
- Bridge loans
- Demand loans
Qualification to avail loans
As said earlier, this qualification criterion also may vary for firms to firms and types of loan.
Below appending criteria are of general bullets that quite suited to all types of short-term loans in principal:
- Applicant should have a regular income meeting certain figure of the amount, which is subject to lender’s policy
- He or She must be salaried or self-employed
- Must have completed the age of minimum 21 years and maximum of 60 years to avail the loan
- Must provide all the supporting and required documents