The concept of borrowing and lending is not a new phenomenon among New Zealanders and the global population at large. For instance, one may take a car loan to buy a car, a mortgage loan to buy a house, a student loan to acquire an education and credits cards to sort out your daily expenses.<\/p>\n
A short personal loan is a lending product that has grown in popularity in the recent past. It is a valuable back up that comes in handy in case of an emergency or any other unexpected turn of events. As the name suggests, this type of loan is availed for personal uses and has a\u00a0<\/span>short term duration<\/a>\u00a0<\/span>of between one and seven years.<\/p>\n
You can take short term personal loans for any purchases or expenses deemed that exceed your credit card limit.<\/p>\n
For instances, replacing an expensive household appliance or major repair in your home may be so overwhelming for your regular credit card. Other instances that this type of loan could be applicable include:<\/p>\n
Some of these expenses can be too much for your normal credit hands and that is why it important to have this type of loan in your arsenal. You only consider short term high-interest loans when an unexpected expense comes up.<\/p>\n
The loan does not require you to place\u00a0<\/span>collateral when you borrow<\/a>. However, the interest rate is higher compared to other secured loans such as mortgages and car loans but it can be a good option when you do not want a collateralized loan or you do not qualify for such.<\/p>\n
Contrary to popular beliefs, all short-term loans are not\u00a0<\/span>payday loans<\/a>.<\/p>\n
When shopping for a short term loan, flexibility is a significant factor that you cannot overlook. It is important to consider the repayment periods and choose the one that will work the best for you.<\/p>\n
For instance, lenders who offer their borrowers up to three repayment periods ensure that you are able to pay off the total amount in bits without having to go through the pressure paying huge amounts of money at one go.<\/p>\n
This flexibility will enable you to pay your debt quicker without it taking an emotional or psychological toll on you.<\/p>\n
Gone are the days when accessing a loan used to be a daunting and complex process.<\/p>\n
Approval of loans required lengthy and detailed paperwork but digitization has made everything simple and less time-consuming. In addition, the different sites found on the website will allow you to compare rates and choose the one that suits your needs perfectly.<\/p>\n
A favourite example of such a website is\u00a0<\/span>Loans 24<\/a>, a leading lending website in New Zealand dedicated to bringing together lenders and borrowers from all walks of life in a mutually exclusive way. The platform takes to account the financial needs of the borrower and matches with the ability of the potential lender to come up with the solution that favours both parties.<\/p>\n
A wide variety of short term personal loans are unsecured which makes them a great option for any person who does not qualify for a collateral loan. The only disadvantage is that these loans attract a high-interest rate mainly because of the enhanced risk encountered by the lender.<\/p>\n
All in all, a short term loan is a quick fix for your unexpected financial woes and it is more flexible than the traditional secured loans.<\/p>\n
The most important thing is to be prudent when borrowing this type of loan and ensuring that you choose a repayment plan that will favour your current financial situation. Conduct due diligence and ensure that you settle for a lender who has your best interest at heart.<\/p>\n
For more information how you can get instant personal loans,\u00a0<\/span>check out our service page<\/a>.<\/p>\n\n