You may be very good at budgeting but you may still encounter unintended monetary complication. It may be a visit to a doctor’s place, an emergency car repair or may be a delay in funding. To tackle these little surprises of life you can keep an emergency fund with you or you can opt for short term loans. Again, many of you may not be willing to languish under the burden of a loan for many years. Taking out a long term loan implies that you have to pay off the loan for most part of your life. On the other hand, in case of short term loan, it can pay it off in a very short period of time.
These types of loans are offered by different financial institutions, such as the payday loan companies and colleges. The term of the loan is decided by the lending institution and your financial capacity. Here we briefly discuss different types of short term loans.
Short Term Student Loans
Some colleges offer short term loans for the students. However, the student or the borrower has to convince the lender that he can repay the loan within a certain period of time, i.e., generally within two months. In case a particular student is expected to receive a student aid, the college may grant much higher amount to loan for that student.
Payday loans are short term loans which you are required to pay before your next paycheck. These are unsecured debts and the rate of interest associated with these loans is quite high. Payday loans are also offered online.
Short Term Bank Loans
Different kinds of short term loans are also offered by banks. Generally, the maturity date of the short term loans offered by banks may vary between 60 days to 120 days. In some cases, maturity period of these loans can be of one to three years. The term of the loan depends upon the bank as well as he amount of loan.
Author’s Bio: Anna Bell is a contributory writer associated with short term loans company and has written several articles for various financial websites. She holds her expertise in the Loan industry and has made significant contribution through her various articles.