Advantages of Short Term Loans
With these hard economic times; slow economic growth coupled with all time high inflation rate, people are increasingly finding themselves with lower and lower purchasing power day by day. Their income is shrinking mainly because it does not increase proportionally with the increasing prices. What makes the matters worse is that, their needs are ever multiplying. So what do we do? This leaves us with no option but to go for loans. There are two broad types of loans; short and long term loans. Short term loans are more preferred by individual who just want to make their end meet before their next payment date. Short term loans have several advantages.
Time to Maturity
Any loan has some time before it falls due. This is called the maturity time. The advantage of these short term loans is that their, maturity period is very short like one week or two maximum being just one month. This short time to maturity means that their interest will is minimal. The shorter the time the less the interest paid. It is also advantageous because the short settlement time saves the borrower the stress of having a loan burden for a long time. They do not even need to be kept in a bank for they can be stored in mobile self storage like cell phone.
Few legal requirements
Mostly, most of these loans are between individuals and therefore they are based on gentleman’s agreement. There are no much legal and authentication documents required in securing the loan. This makes the loans even faster to apply and get. It will even beat logic for them to take long time yet they are supposed to be short term! They are not like bank loans which take some time to materialize. The fact that they are in small amounts means that they are not so much of a burden to the bearers.
With these advantages, short term loans have become very popular among people especially those who are salaried because they help them bridge the financing gap in between the month. Their storage; mobile self storage is convenient.
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