There comes a point in life when one faces financial crunch. He/she then thinks about ways to combat the situation without feeling embarrassed. There are a number of solutions that one can opt for like availing loans. But if requirement for money is less, one can go for short term loans
. There are different lenders who provide short term loans. As the name suggest, these loans are available for short span of time and even the amount of debt is low as compared to other loans. These loans are unsecured, meaning that there is no need to pledge collateral against the borrowed amount.
For short term loans, one can approach payday loan companies that provide debt for amount that varies from one money lending institution to another.
Many banks also provide short term loans and their due date is as early as 1-2 months from the date of loan inception. However, the application process of a bank is a bit longer and requires a lot of formality as compared to the process followed by payday loan providers. At the same time, banks offer loans at relatively low rate of interest than that charged by a payday loan service provider. One of the best benefits of short term financial loan is that they help in paying some pending bills and other expenditure.
Some notable features of short term loans are listed below:
1. They are available for a short span of time, which is usually for 30 to 60 days.
2. Rate of interest is not high, as charged by payday loan providers.
3. Anyone facing immediate financial need can apply for short term loans at a reputed loan provider.
4. The borrower must be at least 18 years of age and must be earning a fixed salary.
5. The borrower must also be employed with the same company for at least six months now.
One can see newspapers, magazines, TV, websites and radio flooded with advertisements for short term loans. While people struggle hard to get their ends meet, they can avail short term loans to meet their immediate financial needs.
The procedure to apply for short term loans is written below:
1. One can either choose to apply for this type of loans by visiting loan provider personally or by filling application form over the internet.
2. In the application form, the borrower has to provide all relevant details that includes personal as well as professional. He/she would also have to provide information about a close relative or friend so that the lender can contact him/her if he fails to contact the borrower directly.
3. After filling the application form with required and accurate information, he/she has to provide some documents to show as proof. These documents include xerox copies of photo ID proof, address proof and salary proof as well.
4. Following this, the application form along with relevant documents is sent to the money lending company for verification and validation.
5. Once the application form and documents are approved, the money gets deposited into the borrower’s account.
Short term loans USA – Shortcomings and benefits
While availing short term loan, the borrower must ensures that he pays it back within stipulated time. Otherwise, he/she would have to pay rate of interest along with additional charges which are relatively high.
So whether you are looking for instant cash in the form of a short loan or looking for payday loan to meet your immediate financial requirements, you can choose to visit money lending firm and discuss the available options there.
If the loan terms and conditions do not suit you, you can also consider any of the following alternatives to short term loans:
1. Take help from acquaintances- One of the most viable options to fulfill financial needs is to ask your friends and relatives to provide you some money. If this seems risky and your relatives shy away from providing you debt, you can ask them to charge rate of interest on borrowed amount. This would make it easy for them to provide you loan and also for you as you would not have to fulfill any formality.
2. Borrow advance check from boss- Some organizations provide the option to its employees to borrow next month’s salary in advance. If you feel that one month’s extra salary can help you in paying pending bills or any other expense, you can ask your boss to provide you next month’s salary in advance.
3. Go for counseling session- There are several communities that provide counseling to people who are in urgent need of money. By approaching a reliable community, you can take their help in managing your budget and spending according to that.
4. Approach bank- If you have an account in a bank from a long time, you can ask the bank manager to provide you overdraft so that you can meet your financial obligations. You must know that this is one of the safest options as you would not end up paying huge rate of interest, as in other loan cases.
5. Avail loan from communities- There are communities formed in colonies that offer short term loans at a very minimal rate of interest. If you share your genuine need of finance because of some unforeseen incident, the communities would offer you debt at low rate of interest. These loans prove to be affordable and also do not end up being a burden on one’s shoulders.
6. Part time job- If you don’t want to borrow money and end up paying high interest, you can do a part time job or freelancing to earn extra money to fulfill your financial obligations.
So if you ever face any unforeseen financial crunch, you can keep in mind short term loans as well as other alternatives to fulfill your immediate financial needs and requirements. Also, keep in mind your qualification before directly approaching money lending companies for debt. If you feel that the issue can be handled next month, then better wait for your next month’s salary and do not avail loans.