What is a Short Term Loan?

A short term personal loan is a loan that is ready fast, or pret rapide. You do not have to provide collateral, but you do have to pay back the loan in less than a year. More often than not, the loans must be repaid in just a few weeks, or perhaps a few months. You typically have to provide proof of employment so that the lender has some guarantee that you will repay the money. These loans usually have a really high-interest rate. It can be as high as 400 percent. There are usually heavy fees and penalties. You want to read the fine print of any loans of this type. You want to make sure you really understand what you are getting into before you sign any paperwork.

You usually find out in less than 24 hours if you have been approved and get the money in your bank account. There are many different types of loans that qualify as a short term loan. A payday loan is a short term loan. This is a loan that is intended to get you to your next payday. Often you only have to provide a pay stub as proof of employment to be approved for this type of loan. You cannot borrow more than you get paid and you are expected to repay the loan immediately after you are paid. There are high-interest rates and hefty fees associated with this loan.

Short Term Loan

Another type of short term loan is a title loan. This loan allows you to borrow against the title of your vehicle. You can only borrow the money if you own the vehicle. You can only borrow a certain percentage of the value of the vehicle. The vehicle is used for collateral, so if you do not repay, they will take your vehicle. Usually, you must repay this loan in about 30 days.

Short term loans are usually easy to get. The requirements are minimal and even those with poor credit usually get approved. Many of these loans can be applied online and you can usually get your money deposited directly into your bank account. The lender will usually take the money directly from your bank account, also. As long as you are able to repay the loan, this may be a good option for you to get the money you need quickly, and then you can pay it back just as quickly.

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