Benefits of a Short Term Loan

Benefits of a Short Term Loan

Have last minute holiday plans or big household expenses thrown off your monthly bank balance?
No matter how much you may pride yourself on your budgeting skills, unexpected costs can surprise anyone at any time. When the need for a personal loan arises, it’s best to look into a short term loan to solve your cash flow problem.

A short term loan is not a big commitment. You’re not borrowing thousands of rupees for schooling or a mortgage in a simple cash flow scenario, so you don’t have to fret over years of lingering debt. If you’ve never applied for a personal loan before, a short-term loan is a great way to get a feel for the loan process and learn how to balance paying back the lender alongside your usual expenses. A responsible lender like Shubh Labh Loan will make sure the terms of the loan and the payback period suit your current financial situation so that the process is never a burden. You receive the cash you need – fast. Since a short-term loan involves a small sum of money, the approval process is quick and easy. You can work directly with a private lender online instead of taking your request to the bank, and most applications are approved the same day. It’s a pretty sweet deal!

You don’t have to offer collateral. Large loans may require security, such as a car or major appliance, which a lender could seize should you be unable to pay back the loan. Since short-term loans aren’t as big of a risk, they’re usually unsecured. Your credit history doesn’t matter. Bad credit can keep applicants from receiving large loans from the bank, but smaller loans are a great way to rebuild trust and credit. An understanding private lender like Shubh Labh Loan will give you the chance you need to redeem past financial blunders through means of a short-term loan. If you’re looking to cover a sudden expense, Shubh Labh Loan offers short-term loans of Rs 20,000 to Rs 1,00,000 and can grant them the day of application. Our caring staff knows that financial mishaps are a universal experience, and will work with you to find a solution to your current cash flow problem. Contact us today to begin the personal loan application process. We can’t wait for you to join the Shubh Labh family!

Short term personal loans are a way to get the money that you need, on a short term basis. This type of loan has a few worthwhile benefits. However, there are also some drawbacks associated with it as well.

Benefits

Quick money– The biggest benefit of a short term personal loan is that it gives you access to the money that you need quickly. If you are in an emergency situation, you need money quickly without a lengthy loan approval process. Short term personal loans can provide the money that you need within a much shorter time span than other types of loans.

No collateral– Many short term personal loans can be granted without having to tie up any of your property as collateral. When you have to use something as collateral, it puts that particular item at risk if you were to default on the loan. With a short term personal loan, you can get the money you need without risking any of your things.

Questionable credit approvals– Many short term personal loan lenders do not put a heavy emphasis on your credit history. As long as you have a steady income and do not have any other outstanding loans, many of them will give you the loan. This allows many people that would not be able to qualify for other loans, the ability to get money when they need it.

No long term commitment– One problem with larger loans is that you have to commit to something for a long period of time. Loans that last for many years can be an intimidating prospect to worry about. With this type of loan, you can focus on the immediate future only.

Flexibility– With many short term loans, you can find some very flexible terms to work with. For example, you may be able to just make interest payments each month and then pay off the balance of the loan at a later date. This can allow you to find a loan that fits with your current situation.

Drawbacks

High interest- The biggest drawback to using a short term personal loan is that the interest rate is going to be higher than long term loans. In some cases, the rates can be quite a bit higher than you are used to. This adds to the total amount of the loan and it can make your payments higher.

Add to the problem– Many times, people take out short term personal loans because they are short on cash. They can not afford all of the bills that they have and as a result, they need to borrow some money. While this will get them by in the short term, many times they will not have any more money later when the loan is due. This can just compound the problem and get them deeper in debt.

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