No matter how well people manage their finances, things happen to upset their budget. If a person’s car breaks down unexpectedly and the cost of repair will do serious damage to the budget, where can they turn? This is where short term loans online come in. What happens when the primary breadwinner falls ill and cannot work? Once again, short-term loans provide a financial bridge, buying time until the individual is well and has returned to work.
What Is a Short Term Loan?
Short-term loans are widely available. These loans are unsecured and are available to people that have a regular source of income. If the applicant is currently unemployed but has a predictable and provable source of income, the loan will usually be granted.
Short-term loans are more expensive than bank loans, but they can be arranged quickly. Because of the cost, these loans get repaid fast and are used in times of cash shortage.
Short-term loans are expected to be repaid in full within 12 months. Fees vary by lender and type of loan. Payday loans are seen as short-term, but the interest rate is somewhat higher than loans from traditional sources.
Short-term loans are often referred to as payday loans. Payday loans are unsecured and are based on the next pay period.
Benefits of Online Loans
Compared to traditional “brick and mortar” lenders, there are benefits to short-term loans online. The entire transaction is done over the internet. Wherever you have access, you can access the lender. This saves time and money. When you do not have to make a personal visit to the lender, you do not have to take time off work, nor do you have to spend money on gas.
One of the worst parts of applying for a loan is waiting. You wait for the application to arrive and you wait again for your application to be approved. When you apply online, you get the cash you need, and you get it the same day.