A short-term loan is a type of loan given to an individual for a short tenure that usually ranges from one month to a year. These are advantageous for individuals who cannot get loans for a longer tenure from a bank or a lender for various reasons.
Short-term loans are generally unsecured, meaning that you do not have to provide any money or property as security for the loan amount. Short-term loans are also known as short-term installments or short-term finance.
What are the benefits of short-term loans:
The benefits of short-term loans are as follows:
1. Online application
You can apply for instant online loans canada online via the lender’s website. The application process is smooth and paperless; you only have to provide scanned copies of your ID, address, and income proof documents.
2. Quick Approvals and Disbursals
An exceptional feature of instant Short-Term Loans is that most banks quickly verify and sanction the loan. Then, funds are disbursed into your savings account within 4-48 hours.
3.Shorter Repayment Tenures
The title of this article indicates that the tenure of such loans is relatively short – ranging from 1 to 2 years. Moreover, you can repay the loan amount in easily Equated Monthly Instalments.
4.Interest and Expenses
Banks offer competitive interest rates on Short Terms with minimal processing fees. Other miscellaneous expenses like taxes, pre-closure charges, late payment charges, etc., are stated at the time of application.
5.No End-Use Conditions
Once the loan amount is disbursed, you can finance any expense. For instance, you can plan a vacation or a wedding, furnish or renovate your home, purchase gadgets, and appliances, etc.
Reasons to consider short-term loans:
Shortage of funds can arise anytime due to unanticipated events and emergencies. Thankfully, due to the many loan options available in Canada, things are becoming easier with each passing day. However, events like an unplanned vacation or sudden cash crunch can lead to a need for financial assistance.
Short-term loans are designed to help during such occasions, rendering them the perfect solution for your immediate cash needs. They can be defined as unsecured loans with one year or less tenure. It’s easy to procure this type of credit due to minimal paperwork and relatively quick processing time.
Short-term loans are distinct and possess many desirable characteristics that make them interesting:
1.Low credit scores
It won’t impact your chances of getting a short-term loan compared to other types of credit. It is because your credit scores won’t be considered in the context of this loan. It emphasizes the ease with which short-term loans are obtained. It is perhaps the only type of loan where your credit score won’t have any bearing.
2.No credit checks
Yes, you heard that right! While many loan applications get rejected based on past credit history, short-term loans are an exception to this rule. Your creditor will not be interested in your credit report and will approve your loan application immediately. And now, you can also avail of a personal loan with a low credit score.
3.Freedom
The loan money can be used for any purpose, paying your child’s school fees etc. It means you have the freedom to spend your loan money on anything. Additionally, the repayment period will be significantly lesser than other types of credit. Finally, you won’t be embroiled in any deals requiring a long-term commitment.
4.Minimal Paperwork
This loan type generally involves the least amount of paperwork, with reliable institutions approving it in just 3 minutes! Many layers of the approval process are eliminated for your short-term loan. Also, the loan amount will be electronically disbursed quickly to your bank account. The overall process can be termed instantaneous.
How to apply for a short-term loan?
Online method
The customer can directly log onto the lender’s website, click on the loan section, select short-term loans from all the available loans, and click “apply” for the short-term loan. The customer can then fill out their personal and contact details to complete the application process.
The application process for short-term loans in Canada is similar to applying for any other loan. Here’s what you need to do:
1 – Make sure you are eligible to borrow
Check the eligibility criteria of the lender from whom you plan to borrow short-term credit.
In particular, check whether the lender specifies any minimum credit score you may need to fulfill to qualify as a successful applicant.
2.Complete the application form:
You can complete the application form online by giving all the relevant details.
3.Wait for the assessment:
Once you submit the application and relevant documents, the lender will begin their assessment. Typically, most provide same-day short-term loans, and you can expect to hear from your lender in less time.
What is an instant loan?
With an instant loan type of short-term loan, you borrow money from a financial organization and repay it over a predetermined time frame. You typically repay the lender every month until the full amount is paid.
The ability to borrow a sizable sum of money all at once is a key advantage of personal loans. It is ideal if you require a big sum of money but need more savings. An instant loan for the self-employed is a terrific way to pay for unforeseen expenses like house repairs, car repairs, or medical expenses. It can also be beneficial when you need to make a significant buy, such as furniture, a new computer, or a trip.
What are the benefits of an instant loan?
An instant personal loan can be avail easily, and it is time-convenient. You can complete the entire loan application process online or office at any time. If your loan application is approved, the loan amount will immediately be disbursed into your account.
What is Short Term Loan For?
Whether you need to pay a bill or an emergency expense, cover a large purchase, or fund an event, a short-term loan instantly gives you the money you need without jumping through hoops.
Get instant loans online in Canada with Instant funding, and use our online lending services to secure your quick cash loans. Get the financial assistance you need without the hassle.