The procedure to apply for short term loans has become easy. Short term loans normally extend between 10-14 days but the money lenders may want to extend this period to some more days to get the interest. There are various types of short term loans depending on the amount of money you need and the duration of the loan. Given below are the types of short term loans:
• Payday loan- this is a type of loan where the amount of money taken on loan varies from £50 and £500. This is required to meet the temporary cash and can be repaid the next time you get paid. A payday loan is essential when there is financial emergency such as immediate work for your house like car repair and stuff. It can also be required to pay the direct debits which are outstanding for the current period.
• Bridging loan- this is a loan which is taken to meet the immediate expenses. There are times when your money may be blocked somewhere else for which you are not able to pay the current expenses. One best example to explain this loan is when you buy a commercial property and want to set up an office and you need money for renovation but you don’t have enough cash in hand because it has been used up in buying the property. The amount of money taken on loan in cases of bridging loans is higher than the amount taken in payday loans. The interest rate in bridging loans is also higher than payday loans because the lender has to lend more money in this case.
• Credit card- this is a settlement with the bank and there are no intermediaries. In this procedure a person can take a loan from the bank any time they want and after a month or so they can repay the amount.