Different Levels of Short Term Loans that Help Different Financial Needs

After the COVID19 crisis around the world today, many companies are looking for ways in which they can overcome this economic crisis. The government has given a lot of support to small businesses, but here are many who’re still struggling. Apart from businesses, individuals are also in turmoil. Many have lost their jobs and family members who looked after their living expenses.

To help them over these times there are many companies that are offering funds or loans. This loan is an economic help to people, as well as organisations that need immediate funds during these difficult times. This financial aid is provided under the name of short term loans that are available all around the United Kingdom today.

LoanPig is a UK based company that provides short term loans at a high acceptance rate. They abide by the regulations of FCA so they are 100% safe and secured. Once your application gets approved, they transfer funds within 24 hours. They provide all terms and conditions along with interest rates online on their website LoanPig.

Short-term loans have a high-interest rate which is why many people are reluctant to take it. Family and friends should be the first option. However, the best part of the short term loan is that it gets over within a year, and in case you’re unable to make the repayment, the company has many other repayment plans waiting for you.

Types of Short Term Loans

There are four types of short term loans –

Payday Loan

Payday loan is a small amount of loan with a higher interest rate. You can pay back the entire loan along with the interest rate at one go. This can be done within 30 to 35 days. Therefore, the period for this loan is quite small and is cleared the moment you receive your pay check.

Short term loans

Short term loan also has a high-interest rate, but this loan is scheduled to be paid within a year. The documents required will be your bank statement for financial status, bank account details, driver’s license for age proof, etc. these details are common among most lenders. It is the same detail that is used in a payday loan. The interest rate is higher in short term loan which is decided by the lender. The processing starts once you approve the interest rate and other charges.

Logbook loan

Logbook loan will give you a proper loan, but your vehicle will be kept as security. The tenure of logbook loan varies from 6 months to 12 months. When you’re unable to pay back the loan amount with interest, then your vehicle is taken into possession. There may be a chance that even after reselling the vehicle, the lender might not get all their money back. So you may have to pay the remaining balance.

No Credit Check Loan

Due to bad credit scores some people are unable to get loans or credit cards approved from the bank. This makes them fall into the trap f loan sharks during the financial crisis. The no credit check loan is suitable for such candidates, because the lender isn’t supposed to run a credit check for them. This loan is rarely suggested because according to FCA all reputed credit companies should run a credit check before approving a loan.

With proper planning and analysis plan a repayment scheme for the loan. It is an assurance that the short-term loan that you’ve applied should be hassle-free for you and your organization.

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