A short-term loan is a type of loan whose maturity ranges from 1 to 4 weeks in a relatively short period of time. It is, therefore, suitable mainly before the payment for the temporary payment of the family budget.
People use this loan mainly for unexpected problems in the household, such as for repairs of a damaged car, appliances, payment of arrears, expenses related to children, and the like.
Short-term loans have recently become very popular mainly due to their availability and quick equipment. However, for short-term loans, be careful about timely repayment, as you will unnecessarily pay high fees for late repayment of the loan.
Who can get a short-term loan?
The loan can be obtained by practically everyone, ie employed people, students, women on MD, pensioners, but also the unemployed. Companies that provide short-term loans often do not check the register of debtors and do not even need a receipt from the employer.
How fast will I get the money?
One of the biggest advantages of a short-term loan is that you can get the money within 24 hours. Therefore, these loans are often referred to as quick loans.
Some companies even approve loans within a few minutes of submitting the application, and if you have an account with the same bank as the loan company, you will receive the money directly to your account on the same day.
How long can I borrow?
As we have already written, the name implies that you can borrow only for a short period of time, usually for a maximum of 5 to 31 days. However, for a fee, you can extend the maturity of all companies. Even if you borrow repeatedly, you can borrow a higher amount.
Who provides short-term loans?
The most well-known providers include Ferratum (up to USD 75), CreditOne (up to USD 100) and Loan Office (up to USD 500). All of these companies provide loans in several European countries, so their loans are verified by thousands of clients. Classic banks do not provide these short-term loans, but if you regularly send the payout to a bank account, you can try to apply for a loan at your bank as well.
Advantages of short-term loans
- loan processing speed (24 to 48 hours)
- free of charge
- even without checking the debtors’ registers
- without proof of income
- without liability
- without personal meetings – you can arrange everything via the Internet
Disadvantages of short – term loans
- short maturity (usually from 5 to 31 days)
- penalties for non-payment of the loan on time
Be sure to keep in mind that if you need a loan, it’s still better to borrow from your family so you don’t have to pay any interest. Thanks to loans, you can easily get into a debt trap thanks to fees, and then you will repay even longer than you thought.