Short-term Personal Loan and its Features

JOHANNESBURG (Capital Markets in Africa) – Among the different types of loans that are, today, available in the market, the personal loan is one of the most popular ones. This kind of loan is borrowed for a short time-period and repaid in full along with the interest. Installments are also available for repayment of personal loans that continue on a per month basis until the whole loan amount is paid off at the pre-decided rate of interest. This is why personal loans are also referred to as installment loans.

You can avail a personal loan for numerous reasons. Of these, debt consolidation or home renovations are the most common ones. The main benefit of availing this type of loan is the instant flow of cash, which helps you to fulfill your needs with ease. Another common benefit of a personal loan is that you can have them now-a-days instantly, online. They come with ample flexibility and in most cases, get approved within 24 hours from the time you made the loan application. Under the types of personal loans, there is a short-term personal loan, which is reviewed as the quickest method of arranging cash advances for any of your needs. Talking of the factors to be met for getting the loan approved, it is the proper occupation and the steady flow of money that is considered by the lending agency. This is because these factors judge your ability to repay the loan amount.

Types of Short-term Personal Loans

The short-term personal loans are of two types. These are the secured short-term loans and unsecured short-term loans respectively. In the case of a secured short-term personal loan, you have to register one of your assets as collateral security against the loan amount that you are raising. This will help you in having short-term personal loans, with flexible payment options at a low-interest rate. Unsecured short-term personal loans are the ones where no collateral security is needed to be kept with the lender for availing the loan. Keeping aside all other factors, the interest rate for the short-term personal loan is kept generally higher than other loan types.

However, the amount of short-term personal loan is highly debated between the various lending agencies. Usually, in most cases, the applicants qualify for a loan depending on their ability to repay the loan and the interest rate on repayment is usually kept above 8% p.a. There are various companies that offer short-term personal loans for various purposes, such as auto loans, travel loans and so on.

Finally, you have numerous advantages of availing short-term personal loans, since it helps you in arranging a substantial loan amount for meeting sudden monetary needs. It takes utmost care of all types of imperative needs, such as paying off debts, medical bills and so on. These loans also rescue people with bad credit score, when in need of monetary assistance. 

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