Are you struggling to arrange funds? If yes, you can apply for a short term loan. People need funds for short periods sometimes to meet urgent crises. Long term loans are purposes such as starting a new venture, buying a new home, or buying equipment or machinery. The tenure for short term loan ranges from one year to two years. If you want to buy a new vehicle, a 12 month loan would be ideal for you to repay the debts. Short term loans help you to meet the urgent need of funds and pay your outstanding bills. The total loan amount is divided into monthly payments that are affordable at a fixed rate of interest. There is large gap between lenders and debtors; hence a platform that connects a large number of lenders and debtors helps to compare the lending services and rates of interests.
When you need a loan, you have to search several websites to find the best lender and rate of interest. The process is time consuming and requires great effort. It is an important decision however; hence you cannot take it for granted and choose your lender impulsively. If you want to take a cost effective decision, it is recommended to be aware about the services of different lenders and choose the best lender.
How to apply for a short term loan?
- Apply for a loan- Firstly; you need to apply on a website for a personal loan. Choose a platform where you can compare the services of the lender and get funds at an affordable rate of interest. You are supposed to provide the amount and tenure for the loan, your income details and occupation. It is the duty of the customer to provide accurate details as they have to be verified. It is expected that the customer would furnish true and fair details and do not breach the terms and conditions.
- Verification and documentation- After you submit the details; the next process is to find the right lender at agreeable terms and conditions. The customers are asked to submit the documents that have to be verified such as bank statements, salary slips, Identification card, address proof or rental agreements. Your documents are required to ensure whether you are capable to taking that burden and pay the installments regularly. It is important that the customer should be able to take the burden and do not land up in a mess of not being able the repay the loan.
- Formalities- Your application is scanned to see your affordability and eligibility. If your documents suggest that you would not be able to take the burden, your application would be declined. But do not lose hope; there is an option to apply for a co-applicant to increase your affordability for a loan. It is not possible that every lender is ready to give you the loan. Every lender will have their own terms and conditions according to which your application is approved. If you were bankrupt and had applied for IVA, the case becomes complicated. Due to your poor track record, your loan application may be declined.
- Approval of the loan- Lastly, if all the documents are accurate and fair, the chances of approval of the loan application are almost confirmed. Depending upon the loan eligibility, your application for loan is accepted. The lender sends you the loan agreement on your email address in the form of a PDF file. The loan agreement specifies all the terms and conditions, rules and responsibilities as a debtor. It is advisable that you should read all the details given in the agreement carefully and understand the mentioned obligations. As a debtor, be sincere in paying all the installments and repay your loan on time. If you are struggling to pay the loan installments, it is your duty to inform the lender and find a debt management solution within a reasonable time.
If you want to know more about the short term loans, you can click on this link– http://www.12loans.co.uk. There is big difference between a short term loan and a payday loan. Payday loans are for a day or week but short term loans are for 12 months or more. These are flexible loans used to meet your urgent needs to tackle a situation. You should not feel greedy and take a higher amount of loan which you cannot repay in the future. Always assess your capability and apply for a loan amount which you can afford to repay on time.