Short-term loans wouldn’t be bad when you need money to meet an immediate need. No one prays for a terrible situation that would require a lump sum of money. However, some situations like that could come your way. Because of this, you would need a loan if you don’t have enough money to sort yourself out of that situation.
Read along to learn more about this loan, what it is about, why choose them, and so on.
What Is a Short Term Loan?
Short-term loans are a type of direct lender loan that is for a lower amount of money than typical loans and must be repaid sooner. Borrowers can get funded rapidly with these loans, which is an advantage that a regular loan does not offer.
They normally repay the loan over time with regular principal and interest installments. With such a loan, consistency and accountability are essential. This is because short-term loans, when paid back regularly, can shield you against long-term debt.
Related: Payday loan Ghana 2023.
Why Choose Short Term Loans?
When you only need a modest amount of money, perhaps a few hundred cedis to deal with a pressing situation. Going to a traditional lender may not be the greatest option. Because their clearance procedures take days to complete, this will simply delay the process. You can get funds practically immediately if you get a short-term loan online from a direct lender. Because of some lenders’ policies, which include rapid approvals and immediate transfers. You will receive funds in less than 24 hours (depending on the policies of your bank).
You can get short-term loans locally or online from a direct lender.
Repayment Terms of a Short Term Loan?
The time you have to repay a short-term loan is determined by the sort of loan you choose. Payday and installment loans are the two most common types of short-term loans. Their repayment terms are:
1. Payday Loans
Payday loans require you to repay your debt on your next pay period, as the name implies. This can be difficult for people whose income isn’t sufficient to allow them to give a significant portion of it to their debtor while also covering their monthly costs.
2. Installment Loans
They repay installment loans over a period of several months on dates agreed upon with your lender. These loans are easier to repay because they do not put a strain on your finances when they are due. It’s almost as if you’re paying nothing, and you’re not forced to cut back on another spending throughout the month because of this one loan.
Can I Get A Short Term Loan For A Bad Credit?
Yes, some direct lenders do not inquire about your credit score when approving a loan. They recognize that a low credit score can result from a history of late payments. Therefore, they rely on other indicators, such as your income statement. This income statement should ideally be consistent in order to qualify you as a reliable borrower. They do not require credit checks for their short-term loans, making them accessible to most individuals.
How Much Money Can I Get From A Short Term Loan?
Lenders know that almost everything today is expensive. So you can get GH₵100 to GH₵100,000 in the short-term loan in Ghana. Also, some online loans in Ghana can help you avail of this loan in the fastest way. So you won’t bother about credit checks, paperwork, or collaterals.
Short-term loans could come in handy as a good option to explore in order to meet your financial obligations. However, there are other loan types in Ghana you can try out. They include guarantor loans, loans without collateral, or even an SME loan for your small businesses.