Short-term loans are personal loans that you can get immediately. When you need money today and cannot get a typical short-term loan, there is the possibility of the newer short-term loan options. They work in similar fashion to the personal loans, but with quicker disbursal rates and shorter repayment times.
A Glancing Look At Short-Term Loans
These loans are basically personal loans that are available immediately where you have your money in several hours or in a couple of days. If you have unexpected expenses to pay for – car repairs, air conditioning repair, medical need, etc. then short-term personal loans are the way to go about it. Keep in mind that these loans have higher interest rates than traditional personal loans, usually between 12 and 22 percent.
There is also a one-time fee to pay as well, although some lenders don’t have as many processing fees as regular personal loans do.
Personal loans have a tenure of at least six months; these alternative personal loans have a minimum of 15 days. How long you have to pay the loan back depends on the lender, but since most are short-term loans, it’s usually not past six months.
Some lenders offer a flexi-prepayment plan that includes no foreclosure or pre-payment charges. These lenders ensure you clear the debt quicker if you manage to pay it off before the loan tenure is over.
To be eligible for these short-term personal loans, you must meet the following criteria,
- You are a salary employee or self-employed professional
- Have regular income to repay the loan on time
- Good credit history
- Between the ages of 21 and 60
- Last three months’ worth of paystubs