Short-term loans are included in liabilities with a contract term not exceeding 12 months and concern rather small amounts, therefore the verification procedures of borrowers are much milder in such cases and thanks to this the client can receive the necessary money more easily and faster than even the best low-interest but long-term loan.
Timely loans – better offer
These types of banking products are usually treated as occasional or promotional for the bank’s regular customers. As a rule, cheap short-term credit is offered in cash for any consumer purpose and may be advertised by the bank as a holiday or holiday loan, or for another such occasion. With the help of this money, we can finance everything we want within the amount we receive. Nothing prevents you from using the loan to pay for a trip, organize holidays, or other family celebrations, or even purchase new clothes or household appliances / electronics. Of course, in addition to borrowing money, banks also give you the opportunity to purchase installments and also offer credit cards.
Loans for a small amount as a bait for a new customer
Cheap short-term loans banks often use as promotional material attracting new customers, or rewarding those who are their clients and use other financial products. Often, in order to get quick cash for any purpose, financial institutions from new customers expect to set up a bank account, and offer regular clients other offers at the same time. Of course, in return, the borrower will get a guarantee of simplified verification procedures and cash almost immediately after submitting the application. It is also worth mentioning that it is a low-interest loan and although the money awarded is not too high, interest is lower than in other products of this type available on the market.
Although short-term loans have their advantages, it must not be forgotten that these are debts which have to be repaid and which are charged to the home budget for some time. It is better not to recklessly decide on short-term loans, based on recalculated financial possibilities. Taking another even a small commitment may have consequences, especially if we already have several other debts.