The word short-term suggests something of a shorter duration. That implies a short-term means that the loan is to be repaid in a short period. Short-term loans are advantageous because of the following reasons:
- Less duration of time: Short-term loans are taken out for a shorter period. It helps to get rid of the burden soon.
- A smaller amount of money: The amount of money borrowed is less so it becomes easy to repay the loan.
With every advantage, there are disadvantages too. The rate of interest of short-term loan is comparatively higher than other secured forms of loan. However, it offers a lower rate of interest compared to credit cards. There are different types of short-term loans. Here I have mentioned a few of them below:
- Instalment Loans: With unsecured Instalment Loans in the UK you can complete your repayment in a set number of scheduled payments. You can also borrow Instalment Loans for Bad Credit in the UK.
- Payday loans: Payday day loans are also short-term loans, which is helpful in many ways. This kind of short-term loan helps to get rid of the unnecessary burdens in an emergency.
- Personal Loans: Personal loans are generally unsecured loans so it requires no collateral to acquire a loan. An individual can use it for any purpose and can repay in monthly instalments.
The above categories of short-term loans are a few of the products. There are other categories also, which may benefit an individual. Always remember to make timely repayments of a loan as irregular payment habits may lower your credit score.
