Description: Short term loans are available from different sources. However, the loan terms vary from one lender to another.
Short term loans are available from various lenders, which include colleges and payday loan companies. These loans become due after a stipulated period of time and this timeframe is entirely dependent on the lending institution.
Short term loans offered by colleges
Some colleges provide short term loans to their students. The borrower has to be a student and should be able to establish that he can pay off the loan within a specific period of time, for example, 60 days. If a student is likely to get student loans or any other type of financial assistance, then the college might offer a bigger amount that would be payable after receiving the financial assistance.
Short term loans offered by payday loan companies
Payday loans are also a form of short term loans that are offered by many storefront and online lenders. These are high-interest unsecured loans that normally become due for payment when the borrower receives the next paycheck. For instance, a payday lender might offer you a loan and ask for $35 for every $100 that you borrow. Out of that $35, just $5 is used towards paying down the principal. The rest $30 is retained by the company as “fees”.
Short term loans offered by banks
Banks also offer these loans. The maturity dates can be as quick as 60 to 120 days from the date of start of the loan. The maximum term can go up to 12 to 36 months following the origination of the loan. The terms are dependent on the banking institution and the amount borrowed.
Some banks might also ask for a security or collateral and this is also determined by the amount borrowed. The lower the loan amount, the less is the chance the lender would necessitate collateral. Banks offer these loans at a considerably lower interest rate than a payday loan company.
Short term loan application procedure
The application procedure for these loans is easy. You don’t need to fax any documents. You just need to have a valid checking account. You don’t have to pay any processing fees and no credit check is needed. You can fill out the online application form by entering some basic details. The whole application procedure is safe and secure and would just take 2-3 minutes.
Short term loans can extend a helping hand to you when you desperately need cash to come out of a rough spot or deal with unforeseen events.
