4 Reasons to Get a Short-Term Personal Loan

Short-term personal loans allow people to get their hands on money more quickly than do typical loans. Short-term loans come from a variety of sources and lenders. Therefore, they are usually available regardless of where you are. Here are a few reasons that you could consider getting a short-term personal loan.

1. Flexible Terms

The terms available on short-term loans appeal to many borrowers. Since you are working with a shorter time frame, you typically have more options on the terms of the loan. One common option for a short-term loan is a balloon payment. If your loan has a balloon payment, you have to pay only the interest every month. Then at the end of the loan, you pay off the entire remaining balance. This can provide you with flexibility on a month-to-month basis in your budget. 

2. Unsecured

Many short-term loans are unsecured. This means that you may not have to put up any collateral in order to secure the loan. This can be very beneficial as you do not have to tie up any of your assets. You can just apply for the loan and get the money that you need. Throughout the life of the loan, you do not have to worry about losing your house or your car as a result of a default on the loan. 

3. Faster Approval

This type of loan often has a faster approval process than other types of loans. This is especially true if the loan does not require any collateral. The lender does not have to appraise on any property, so the process is sped up. Many lenders do not have all of the same procedures for smaller loan amounts on a short-term loan as they do for larger, long-term loans. This can result in faster approvals overall.  

4. Variety of Uses

Another benefit of these types of loans is that you can use them for a variety of expenses, rather than adhering to any specific rules.

One popular use of these types of loans is for business purposes. Your business may be having cash flow problems, need to buy equipment, or have a variety of other needs. A short-term personal loan could help you do what you need to do for your business. 

Another common reason to get a short-term personal loan is to have your car repaired. Some car repairs can get you a bill that is in the thousands of dollars. When something like that happens, most people do not have the money sitting around to pay for it. A short-term personal loan can help you get through the tough times and get you back on the road again.

With the high cost of health care, many do not have the funds needed to cover medical bills. A short-term loan can be the answer. 

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