Short Term Money Loan

Unexpected and unforeseen expenditure can crop up out of the blue, and not always are we equipped to handle such financial exigencies. Potential sources from where you can take money may not oblige you always. This is when short term money loans provide the relief you need. Short time money loans are loans for people who need immediate cash and will repay the same within a short term. Short term money loans alleviate cash shortage due to mounting expenses and shortage of reserve. The applicant can avail an amount based on the requirement and repayment capacity.

Short term money loan is a blessing in disguise for people who have restricted earnings. The applicant's credit history is irrelevant for short term money loan application. So even if the applicant has a bad credit history, he is eligible to apply for short term loans. He will be granted a loan under the same terms and conditions like any other applicant. Once the loan is cleared, the money is deposited into the account of the applicant. Repayment money is also drawn out of the borrower's bank account.

Few lenders might want a post-dated cheque as an assurance for the money. Banks ask for collateral while lending short term money loan, online financial companies carry out a credit check. Remember that financial companies lend smaller amount of money when compared to banks. Banks offer nothing more than $15, 000 or $20, 000.


Circumstances where short term loan will help

• Unforeseen crisis.
  
• Bill payment gets delayed due to shortfall of money.
  
• Due date for student loan payment.
  
• Emergency car repairs.
  
• Threat of utility disconnect.
  
• To help family members or friends in their hour of need.
  
• If bills are pending for more than a month.
  

To avail a short term money loan

• The applicant should have completed eighteen years of age
  
• Should be a citizen of the country where the loan is applied for.
  
• Applicant should have a regular employment.
  
• Applicant should have had a consistent earning for a minimum of six months prior to the loan sanction.
  
• Applicant should have a legal bank account.
  

Benefits of short term money loan

• Instant cash available on applying for loan.
  
• People with poor credit condition also can avail of this loan.
  
• No documents are required for verification.
  
• No security required for applying the loan.
  
• Loan can be used for any kind of unexpected expenditure. Foe e.g. home repair, purchasing a car etc.
  
• Loans approved within a short duration, anywhere between 2 days and two weeks.
  

Limitations of short term money loan

• Interest rate charged is on the higher side when compared to other loans.
  
• If loan amount is not paid back by pay-by date, you have to pay heavy penalties.
  

Types of short term money loans

Payday loan: Payday loan is a type of short term money loan where a cash advance is given as a loan to the borrower. The borrowed loan amount should be paid back on the next payday i.e. when the borrower receives his/her subsequent pay. Payday loans are generally used to meet unexpected monetary crisis. Borrowing term is fixed between 15 to 31 days. Any person who has regular employment can avail this loan facility.

Bridging loan: Bridging loan is another type of short term money loan and is more secure when compared to payday loan. The borrower takes a loan to meet his emergency expenses when his money is held-up elsewhere. The amount of money borrowed through bridging loans is much higher than payday loans. A bridging loan has to be repaid anywhere within 1 month or 1 year. Bridging loan is usually borrowed for matters relating to property.

Student short-term loans: Student short-term loans help students meet unexpected expenditure for their academics. Students can use this loan for education related travel too. These loans are not secure and the rate of interest payable is also pretty low when compared to other short term money loans. These loans have to be repaid by the borrower after he/she lands in an employment after completing the course.