If you have a financial crisis and need some cash in urgent then you can apply for a short-term loan. Such short-term loans are designed for smaller tenures like one to two years, and you can avail such loans online instantly. There are some personal loan apps and you can download such apps on your mobile to avail of instant short-term loans.
Why would you go for Short-Term Loans?
- Medical emergency: You can apply for a short-term loan when a medical emergency arrives and you don’t have enough money in your hand to cope with the situation.
- Financial emergency: For repairing your house or your car you can get a short-term loan.
- Bill payment: If you have an emergency for paying a utility bill or you have forgotten to pay the bill you can get a short-term loan.
- Emergency for your business: If you have a business then you can face some issues in your capital funds and you might need to pay your suppliers instantly you can apply for a short-term loan. Apart from that, you can utilize the amount to complete your project and hire extra resources.
- Personal emergency: Sometimes you go through a situation where you have to pay before the payment day. A short-term loan can be the best option for such emergencies.
Advantages of Short Term Loans:
There is no risk associated with short-term loans and you can apply for such short-term loans online. In the case of personal loans offered by banks, you need to wait for a month because you have to submit your documents to process your loan.
Banks will take more than a month to sanction your loan and they can also decline your application based on your poor credit history.
You can avoid such hassles by applying for a short-term loan and you can verify your KYC online to get your amount credited to your bank account instantly. A short-term loan is generally a loan of around $2000 and the tenure is 16 days to 12 months.
However, some online financial lenders offer more amounts as a short-term loan and tenure of a maximum of 36 months.
- You need to maintain a cash flow in your business and it is difficult to clear the overhead dues. In this case, you need to pay your vendors on time and you can avail yourself of such-short term loans. You can even take a loan for a few months and you can repay the amount within this short tenure to clear your dues.
- If you have a seasonal business then you need to invest a huge amount to add your products to your inventory during the peak season. In this case, you can apply for a short-term loan.
- Your business can get affected by natural disasters and you can also face some technical breakdown suddenly. How would you handle such situations if you do not have enough cash in your hands? You can simply apply for a short-term loan to deal with such emergencies.
- Indeed, you cannot get a loan if you do not have a good credit score. Lenders will check your credit score first before they process your loan application. In the case of short-term loans, you do not need to have a good credit score. But, if you take a short-term loan and repay the amount on time then your credit score will be increased and you will get further loans in the future.
- When you apply for a loan with a higher amount, you need to pay a higher interest rate. And you can reduce your interest rate by choosing a short-term loan. You can also repay your loan in full at any time to close your account. And you do not need to pay any extra charges for the same.
So, now you can apply for a short-term loan online. Make sure, you must check the eligibility criteria and interest rates offered. By banks and other private lenders to choose the best deal.