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. 6 Qualities Of A Reliable Music Insurance CompanyAuthor: victor12johnson
2. 5 Common Mistakes To Avoid When Getting Violin Insurance
Author: micheljordan4
3. Understanding The Need For Clarinet Insurance
Author: musicinstrumentsins
4. A Guide To Insuring Your Music Studio
Author: victor12johnson
5. Audio Equipment Insurance For Home Studios: Is It Worth It?
Author: micheljordan4
6. Best Astrologer In Hoodi
Author: Astrogroup
7. Explore Microsoft Software Solutions With Vexil Infotech
Author: vexil infotech
8. Vexil Infotech: Your Trusted Partner For Nbfc Loan Management Software
Author: vexil infotech
9. Why Choose Business Loans Over Other Options?
Author: Capital Business
10. A Comparative Analysis Of Dedicated Piccolo And Home Insurance Plans
Author: musicinstrumentsins
11. Common Perils Faced By String Instrument Owners
Author: victor12johnson
12. The Strategic Importance Of Financial Advisory In India's Growing Economy: Trends, Challenges, And Future Prospects
Author: Drishti Desai
13. The Hidden Costs Of Health Insurance
Author: Algates Insurance
14. Explore The Journey Of Saxophone From Raw Brass To Musical Beauty
Author: micheljordan4
15. Comparing Comprehensive Home Insurance Plans: Tips For Uae Residents
Author: Stephan Rose