In the time of changing financial scenario, anybody can have a sudden and urgent requirement of cash. While it might be possible for some people to arrange for cash at short notice, most of us do not have so much disposable cash at hand. For such situations, financial institutions like banks, credit unions etc. have the provision of offering short term personal loans. Many registered and legal websites like https://www.loanpig.co.uk/ also do the same.
These short term personal loans have some special rules and regulations associated with them. For example, these loans have a low maximum amount, higher interest rates and short repayment term. These special rules are formulated keeping the nature of short term personal loans in mind. In the following sections, various kinds of such short-term loans are described.
- Payday loans
These loans are ideal for employed persons who have a dire and urgent need of cash. These loans are directly credited to the applicant’s bank account after careful screening of the employment record. It is expected that repayment with interest will be made as soon as the applicant receives his/her salary from the employer.
- Loan consolidation
This kind of short-term loans is useful for persons who do not wish to borrow small amounts from different lenders, but prefer full amount to be borrowed from a single source. Loan consolidation is a way to merge many short-term loans into a single loan. After providing all the documents required for this loan, the applicant agrees to repay part of the loan on monthly basis. This reduces the rate of interest and gives the applicant a fixed time frame to repay the full amount so that it can be planned better.
- Emergency cash loans
This type of cash loan is ideal for people who need immediate cash for emergency situations like paying medical bills, urgent home repairs or any other unforeseen circumstances. Credit unions and web-based financial services like https://www.loanpig.co.uk/ have less strict lending rules and policies than conventional banks.
- Bridge loans
This type of loan is taken to cover a very small time frame of a few weeks. The applicant takes this loan while arranging another bigger, long term loan. Basically, this small loan is meant to cover the expenses and financial commitments until the bigger loan is sanctioned. Once the bigger loan is sanctioned, the borrower can repay this bridge loan.
Bridge loans have higher interest rates than other types of short-term loans. Also, they might require cross-collaterals from the borrower. However, these loans are among the quickest to be approved.
- Refund application loan
This is a unique type of short term loan as it allows the borrowers to apply for the loan against their tax returns. For a person with proper tax return records, this type of loan is ideal. The repayment of the loan is done once the borrower receives the tax refund.
Thanks to online financial services like https://www.loanpig.co.uk/ and credit unions, it is possible to apply for a short-term loan and get cash. These services have made it possible for applicants to get money quickly.