Short Term Loans are debts that have a low tenure. They are generally due in 30 to 60 days. A number of institutions offer short term loans to a wide range of audience. These loans can be availed from Payday lenders, online sources and some banks. The period of loan and other formalities vary accordingly. Students can also avail short term loan from colleges. He needs to establish the fact that he is capable of repaying the loan within the stipulated time. The amount of loan would vary but would be higher for students who are to receive an educational loan or aid in the near future. Such loans usually have tenure of 60 days.
Payday loans are another popular form of short term loans. They are unsecured loans and come with a high interest rate. A number of kiosks and online lenders provide payday loans. They are granted in lieu of the borrower’s paycheck. The tenure of these loans is up to the borrowers next payday. In certain cases payday loans can be renewed as well.
Short Term Loans are offered by banks as well. The loans offered by bank can have a longer tenure, generally up to 120 days, but it would depend on the amount that is to be borrowed. Some banks insist upon collaterals is the loan amount is large. In that case the tenure can go up to a year or more, but not more than 3 years. However the processing takes more time in banks as a proper credit check is done. So, a few basic documents are required by the bank. Business men take advantage of these short term loans to meet their working capital requirements. In that case the business is required to have good credit standing.
Short Term Loans are available easily nowadays from a variety of sources and are great to meeting small term cash crunches. The only concern is the high interest rate that comes piggybacking with these loans. So they should be availed after some deliberation.