Short-term loans are available to people who need cash immediately. This is particularly necessary if the payday is still a few days away and the expenses need to be paid soon. The loan can be either secured or unsecured. Unsecured loans usually have higher interest rate because there is no collateral. The duration of an unsecured loan is also shorter compared to that of a secured loan.
For unsecured loans, the borrower can loan between £80 and £1,000. The duration of the loan is usually 14 to 18 days. Interest rates usually run up to 20 percent. For secured short-term loans, the borrower can borrow up to £25,000 depending on the lender. The payment period could be within a year or 12 months. The loan can be extended for up to 5 years. The interest rate for secured loans is usually lower than that of unsecured loans because of the pledge of the asset as collateral of the loan.
In order to get a short-term loan, the borrower needs to meet specific requirements. He must be at least 18 years old. He must be a resident of UK. He must have a steady job with income more than £1,000 a month. He must have an existing bank account. He must be working in the same job for the last six months before applying for short-term loans. If approved, the loan is usually deposited into the borrower’s account within 24 hours.
There is no need to conduct credit checks for this type of loan. Often people with bad credit score feel hesitant to loan money for fear that their application will be rejected. With short-term loans, they can be sure that they will get the loan they need, provided they meet the requirements. Applications can be done online. All the borrower needs to do is fill up an online form.