An Insight into the Short-Term Loans and Their Repayment Policies

Ailsa Adam April 2, 2024

Short-term loans might sound short. However, they are loans required for important causes. They are quick, flexible and easy to get. Again, they are one of the most popular financial products. 

Will it surprise you to know that 11.2% of UK young adult borrowers from age 18 to 24 have borrowed 15% of short-term loans borrowed in the UK? Well, you might surely be surprised when you learn that the percentage goes higher with the age and the number of loans taken. Think of people from age 45 to 54 in the UK and you get 18% of them borrowing 19.7% of the short-term loans. What’s more?

In February 2023, start-up business loans exceeded the 100,000 mark in the number of loan products borrowed. You must know that a significant part of the start-up loans is actually borrowed as different types of short-term loans. 

What Exactly Are the Features of a Short-Term Loan?

As a matter of fact, short-term loans are relatively a newcomer in the Industry. These easy loans have become popular, though, with time. With a short-term loan, you can avail of ‘distinct’ financial privileges. You don’t get them with other loans.

  • No collateral requirement
  • No guarantor involvement
  • Borrow money online
  • Get loan approvals within 10 minutes and disbursement in a day
  • Take out larger amounts
  • Avoid lengthy or complex paperwork
  • Get the loans more  flexibly using any sort of income statement (even benefits)
  • Say goodbye to hard credit check

You can consider a product like a 3000-pound loan as a fast and all-rounder short-term credit. The loan amount is quite high. However, you don’t have to worry about complex paperwork or lengthy verification processes for it. Since the process is online and paperless, a few clicks get you the loan.

You can, in fact, avail yourself of one more benefit. Surprisingly enough, the loan term is going to guide you towards that. This loan you see here is a 12-month loan. Lenders usually term a short-term loan from a few months to 12 months (a year) up to 3 years.

With this loan, you may repay your lender the money in a year. This factor writes off the loan faster. You can relax sooner. And yes, repaying a loan in a relatively shorter period can have good results for your credit score.

Short-Term Loans Are Popular Products: Here’s Why

Short-term loans are popular simply because they are not as complicated as other loans. By saying that, we are not minimising other loans, such as secured loans. It’s just that the secured loans serve a purpose of their own.

When you think of a short-term loan, though, you get a simple loan in the simplest ways possible. All you need to do is get in touch with a lender, provide your income details and credit score for the loan you want, and take out the money. We believe this is a fairly simple way to borrow money in these complex days.

Reasons You Can Take out Short-Term Loans Now

At this point, you might want to take out a loan of this kind from us. We have a variety of loan products, though, such as a 1000-pound loan, a 2000-pound loan, doorstep loans, or even Purpose Loans. To learn why you need these loans without a second thought, you can take a look at the points mentioned below:

  • These loans offer fast credit, that’s the best to manage emergencies.
  • It is easy to count on these loans for quick approval, which you may use as a financial statement.
  • You can use these loans to manage urgent projects such as home repair or paying your kid’s college fees.
  • What if you are travelling and you’re stuck in a major financial issue? You might not come back home and resume working/ restarting your business when you want to. A short-term loan might help.
  • Businesses can make short-term investment decisions with a short-term loan. 

Need to know how to take out a short-term loan easily? Maybe you are looking for guidance regarding it. Well, you can get this in the next point.

Borrow a Personal Short-Term Loan Now in These Easy Steps

When we are here with you, your worries about borrowing money quickly are nullified. Take a deep breath and go through the following steps.

  • Understand how much loan amount you can afford. We recommend you use a loan calculator so that you know if your income is sufficient enough to repay the loan terms. 
  • Check the multiple repayment packages you get from us. It’s a financial perk, though.
  • Find out the loan duration and think ahead to confirm loan repayment at the right time and amount.
  • Update your credit score because we will need it. We will make a soft credit check to understand your financial behaviour.
  • Arrange all your income details where your salary is clearly mentioned. You can use extra income or alternative earning documents to take this out loan.

What If Short-Term Loans Are Not for Me?

There are occasions, though, when a short-term loan might not be the right solution for you. That’s okay, and that’s natural. Here are a few points when you need to reconsider or straight up avoid taking out a short-term loan.

  • Short-term loans come with a high interest rate. Failing to pay this in the right quantity, you can expect your loan term to lack organisation. In a few cases, it might lead you to pay extra loan fees.
  • You generally should not take out a short-term loan when you have another or more than one loan to repay. Because of the high interest rate, you might not be able to repay this loan.
  • It’s better to avoid a short-term loan in higher amounts when you know your income cannot bear the repayments at ease. You also have other financial responsibilities than repaying a loan, right?

To Conclude: A Few Alternatives

You can take out a short-term loan for a lower amount from us when you see you are suffering from a financial condition. After all, you have to be careful with your finances not to override your income with debts.

Think of an alternative loan. We offer loans for people on benefits with a variety of other loan products. With this product, you don’t have to worry about earning more or making extra income. Just share your benefits documents and take out a loan as far as the income from this program can allow you to borrow money. And if you’re still confused about what to do with your borrowing or what loan you should take out, then we are here a phone call away. Ring us (or you can also drop a message) anytime to get our assistance on all your borrowing needs.

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