The main feature of short term loans is the period of its repayment. In the majority of cases, these loans should be repaid in a certain prescribed period. This term is usually equal to a year or less. It is convenient because you don’t have to repay it for years. Most often people take these loans before the payday. Thus, they can make a large purchase or celebrate a wedding or a birthday when they want.
Nobody will deny that short-term loans are becoming more and more popular every day. Why? Take a look:
- You get the money when you need it. You don’t wait for a salary and don’t accumulate the necessary amount for years.
- The burden on your budget is stretched on time. It is much easier to give a few months a small amount, rather than spend a great sum in a moment.
- Credit history. It is important for credit institutions to be confident that the borrower will repay the debt on time. Therefore, a small but successfully paid loan will be your advantage.
- Psychological independence from other people. There is no need to beg your friends for money. In addition, no one will demand repayment of the full loan amount before the loan expires.