ALL >> Insurance >> View Article
Features Of A Short-term Loan That You Should Know

These long terms, however, are not meant to meet you short-term requirements. For example, you are going out of station and you need some money pay for your trip and your stay. You will not get a long term loan to fulfil the money requirement for trip. In this case there are some people that opt for short-term loans. Short-terms loans are basically the advance that is paid back within one year. They are availed to meet the short term cash needs like paying off a bill, buying a home appliance like microwave or a food processor.
Here are some features of the instalment short-term loans you must know before you get one.
1. Duration:
This is the major advantage of a short-term loan. The duration of this loan is less than one year or maximum one year. You will not find a short-term loan that would exceed the time limit of one year. This means that you are burden free within one year.
2. Cost of the loan:
Cost of loan varies from organization to organization and also depending upon the type of loan. There are some financing organizations that charge more for a short term loan than they for a long ...
... term loan. Also, some organization that charge price according to the type of advance you are borrowing. For example a personal loan will carry the rate of interest that will be different from that is used to finance the start-up costs.
3. Purpose:
An individual might go for a short-term loanto finance his trip or buy an appliance like a fridge or even to pay off their utility bills. But, an organization is dependent on a short term to finance its start-up costs, account payables and operational costs.
4. Clean up:
The clean-up happens when the financer asks the borrower to pay back their entire obligation. Clean-up term is used to when the financing organization asks the borrower to pay off their entire obligation. For banks clean-up is the proof that these types of loans are meant to meet the short-term or cyclical requirement.
5. No prepayment penalty:
Long term loans carry prepayment penalty. This mean that you are if you pay back a long-term before the time of complete repayment you will have to bear the charges for repayment on advance. Such a clause is not attached with a short-term loan.
Instalment short-term loans have several benefits attached to it. The best part is that it doesn’t require a borrower to keep a security with the contract.
Broad Stevens is author of this article. For further details about Installment short term loans and short term installment loans Uk visit the website.
Add Comment
Insurance Articles
1. The Benefits Of Having Oboe Insurance For Students And ProfessionalsAuthor: musicinstrumentsins
2. How Recording Studios In New York City Mix Vintage Gear With Modern Tech
Author: victor12johnson
3. A Quick Guide To Saxophone Insurance For Musicians
Author: micheljordan4
4. Cpt Code 97530: Maximizing Reimbursement For Functional Activity Training In Rehab
Author: 247 medical billing
5. Is Private Health Insurance Worth It In The Uk?
Author: Financeadvisors
6. Icd-10 Codes For Skin Tag Removal: Complete Billing Guide For 2025
Author: 247 medical billing
7. Insurance For Appraisers - Essential Coverages Every Professional Needs
Author: victor12johnson
8. Cpt 99214 Vs 99213: Key Differences In Office Visit Coding For 2025
Author: 247 medical billing
9. Basic Care Tips To Keep Your Violin In Shape
Author: micheljordan4
10. Why Every Clarinet Player Should Have A Good Case?
Author: musicinstrumentsins
11. Private Healthcare Insurance: A Guide To Choosing The Best Plan
Author: Financeadvisors
12. Protecting Your Music Store Inventory With The Right Retailers Insurance
Author: victor12johnson
13. Physician Mortgage Loan Vs. Conventional Loan: Which Is Right For You?
Author: Leveragerx
14. Importance Of Cello Insurance - Why Every Cellist Needs Specialized Coverage
Author: micheljordan4
15. Bassoon Insurance Essentials - Protecting Your Instrument At Home And On Tour
Author: musicinstrumentsins