A Brief on the Demanding Short Term Loan
Short term loans are referred to loans that are specifically provided for a short tenure of less than one year. A short term loan is obtained to support a temporary personal or business capital need. A short term loan is a type of credit and it involves a borrowed capital amount and interest that needs to repay. The amount is necessary to be paid by a certain due date usually within a year from receiving the loan. These are generally a one-time loan and are useful in case of non-availability of credit from a bank for a longer tenure loan.
In the case of these specific types of loans, the interest is usually payable on the principal advance amount. Also, the repayment tenures are shorter than other types of loans. Private finance companies or banks provide these loans and are made convenient to customers and businesses.
Importance of short term loan
A short term loan is an excellent option; particularly for small businesses or new establishments that are not yet eligible for a credit sanction from a bank. The loan borrowed amount may range from as low as INR 5000 to 70, 00,000. Along with businesses short term loans are also suitable for individuals who might encounter a temporary, sudden financial problem. Individual and businesses can apply short term loan online anytime and from any location.
Loan for a very short duration is the prime feature of short term loans and it is termed such because it needs to be paid off quickly. Mostly, the loan must be paid off within a short span of six months to one year or maximum stretch up to 18 months. Any loan that stretches beyond this period is considered as a medium-term or long term loan. Few short term loans don’t specify any due date for repayment and are flexible enough to allow the borrower to pay back the loan at their own pace.
Short term loans are available in varied forms, as
1. Merchant cash advances
2. Lines of credit
3. Payday loans
4. Online or Installment loans
5. Invoice financing
6. Credit Card
7. Personal Loan
There are some advantages involved with short term loans. Firstly, there is a significantly less amount of interest paid as it is to be paid off within a year. Secondly, these loans as compared to long term loans are considered less risky because of a shorter maturity date. Also, short term loans are the lifesavers for smaller businesses or individuals as the requirements for such loans are generally easier to meet.
Short term loans are quite beneficial for both businesses and individuals. Antworks Money also facilitates the hassle-free loans from different private and nationalized banks. Anyone in need can even apply short term loan at low rate through us. This loan type offers a good way to resolve sudden cash flow issues for businesses. Such short term loans are an effective source of emergency funds for individuals. Anyone in need of instant fund can take the advantage of the loan.
