Different Types of Short Term Loans to Consider

Different Types of Short Term Loans to Consider

Short term loans come in handy when you want to plug a gap in your finance that may have occurred due to an unexpected expense or bill. There is a possibility that your wages haven’t arrived on time, you had to pay for an unexpected medical treatment or have had to deal with a sudden household or car repair bill. This is where short term loans provide you with quick access to finance so you can make ends meet. These loans have short repayment cycles and are easy to obtain because the amounts are reasonable. There are different kinds of short term loans you can get and some of the top ones are:

Installment Loans

These loans are typically obtained from a bank where you are loaned a certain amount. Periodic repayments have to be made until the full loan amount and interest has been paid in full. In the case of employed customers, the installment amount is automatically detected from their account on a monthly basis and this deduction is stopped when the loan has been repaid. These loans come in handy when you wish to pay for a home, car or college fees. Installment loans such as home equity loans can also be used to pay for home maintenance and repairs.

Title Loans

They are one of the fastest growing short-term finance products as they are secured and high-interest loans in which the car is used as collateral for a loan. Thus, these loans are made on the basis of car equity. If the customer is unable to make the loan payments, the lender has the right to possess the vehicle at any time. GPS trackers are installed in these vehicles to make them easy to track.

Payday Loans

One of the most popular short term loans available these days are payday loans. They are paid directly into your bank account and are meant to help you in dealing with financial issues as you wait your payday. This means that the loan and interest is due as soon as your salary is processed, but some lenders may give you the freedom to decide your payment period. In order to be eligible for this kind of loan, you just have to have records of employment and payroll. These are great when you need immediate finance and don’t have a solid credit score. You can consider payday loans Alabama to apply for this type of loans.

Bank Overdraft

This is defined as extension of credit in which the financial institutions agrees to cover the fees charged on your account in the case where your checking account doesn’t have the funds needed. If you receive any funds in your account to cover a payment, you will have to pay an agreed rate of interest to the bank for this facility. These loans come in handy when you have an ATM overdraft, need an international loan or are unable to maintain an account register for keeping track of your receipts and payments.

You can apply for any of these short term loans to get the finance you need for your emergency.

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