There is a every possibility that you may need money for certain unexpected and unanticipated events. Since, such situation may occur in unplanned manner, there is a need for certain loan facility under such condition.
Usually, under such situation any short term loan can come for your rescue. Hence, let us know about various types of short-term loans that are available so that under such situation, we can make use them as per our convenience.
Following are few common ways to obtain short-term fund to meet our emergency needs.
- Bank overdraft
Bank overdraft can be very useful when you are under any emergency situation. Any bank where you have an account will usually allow to draw money more than that you have in your account, so that you can meet your urgent expenses and easily combat the situation.
- Money marketing
There are few budgetary companies or banks who are ready to provide money advance as they have surplus fund available with them. They usually bail-out the person who is in urgent need of money.
- Credit card
By using credit card, you can buy any kind of product or service without paying in cash and later on you can pay it back to the bank as per the terms.
- Instalment loan
Such kind of loans are available with most of the banks which you have to pay in instalments till you pay back the full amount with interest.
What are the advantages of short-term loans
Following are few advantages of any kind of short-term loans:
- Helps to improve your credit score
Usually short-term loans are not for any big amount and therefore people can easily pay them back as per the agreed schedule. If you can clear your loan faster, then it will improve your credit score. Thus, you can avail any loan in future with better terms at easy interest rates.
- Lower rate of interest
Usually short-term loans are needed when you fall in any emergency kind of situation and the amounts are usually not too big. Therefore, you can choose the loan that offers lower rate of interest which you can also clear in shorter period of time. Therefore, you need not pay too high amount in the form of interest.
- Instant approval
Some of the loans are approved instantly and no credit rating or your financial capabilities are accessed for approving such loans. The amount will be credited to the account on the same day.