A need of money can arise at any point of time. There is no way one will be able to predict when an emergency requirement arrives. Thus, it is always best to plan for contingencies in advance and have a backup plan one can rely on when such a need arises. But, what to do if you are in dire need of money and you have got no available options? Well, there is no need to get all worked up. The financial institutions will be happy to help you out through such contingencies. They have the perfect solution – short term loans.
Short term loans can be of different types. It can be repaid from within a month to within a year. The most popular ones to meet the immediate requirement is a pay day loan. A pay day loan is a form of short term loan which is taken at a very high rate of interest and the amount is to be repaid the moment the person receives the next paycheck.
This is a wonderful way to take care of the immediate needs without having to face any financial crisis. However, there are many instances where the person taking up a pay day loan has fallen further into debt and have not been able to recover from it. This is mainly in the case where the amount borrowed could not be repaid within a short time period. Pay day loan is best for those who have a guaranteed income or the one who is sure to receive the money needed to pay off the loan within the stipulated time period.
Short term loans can also be taken for about a year. It is paid off during this time period. The rate of interest is high, but not as high as the pay day loan interest. The amount is agreed to be paid off in installments during this time period. This is one form of installment loan.
Installment loans are generally those which have been taken for a large time period. It is paid off in a few months’ time or over the years. The duration is usually decided depending upon the amount taken as loan. The repayment structure is prepared at the time of approval of the loan and might include just two payments or more, as is the case.
Financial institutions like Lendgreen have made it very easy for anyone with valid documents of income proof and other necessary documents as stated by the government to apply and get loans sanctioned. Thanks to online quick cash loans, it is possible for a person to apply and get a loan from any bank right from the comfort of home or even while travelling.
Even though getting a loan does not seem like a big issue, it should be kept in mind that the best way forward is to never opt for any form of loan unless absolutely necessary. Taking loan is a habit that can turn out to be disastrous. Taking loan at a high rate of interest is also a bad idea at any point in time. It is best to plan the needs in advance and always have means to support in times of emergency.