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Short-term loans considered a lifesaver at the time of emergency. As an ordinary loan the lender charges high rate of interest and it gets difficult for you to repay those loans. The same things happen with this short term loan, the lender wants to take as much benefit as they are lending some ordinary loan by asking you higher rates of interest. This rate of interest here depends on your financial history, credibility of repayment and the type of short-term loan you asked for. This lender will ask you for interest rate with extra fees charges in order to make profit. So again it is very important to do a market research and compare the offer of one Moneylender with the other, in the best interest rate terms and conditions. Which will help you to pay back the loan within a time of one year and after the evaluation accept the best offer you get.
Common advantage and disadvantages of short term loan:
Few of the advantages and disadvantages of short term loan are stated below and might be helpful for you:
- Offers you quick response at the time of emergency:
As already discussed before these loans can fulfill your quick need for money in order to deal with unexpected circumstances. The second most important benefit of short-term loans, there is no need to tie up your personal assets as security of repayment that is known as collateral. In order to get quick Personal Loan Singapore go to website like crawfort.
- Autonomy in payment time and procedure:
You get autonomy in deciding the payment plan which is most suitable to your needs. As well as you are not bound to long-term commitments, you can get off the burden of repayment from your shoulders any time you decide.
- Ask for many additional charges:
The high rate of interest is commonly considered as the biggest drawback or short term loan. But other than that it also asks for additional payments in the form of fees on every small detail requirement. This requirement may include late payment; any point missed up within the time of loan and many other factors that can quickly add a great amount of additional money in short-term loans.
- Don’t provide long term benefit:
In situation where you require long term financial aid and at the same time you are owner of some small firm then short term loans could be considered a disadvantage.
