What you need to know about short-term loans

What you need to know about short-term loans is that they’re good for last-minute emergencies. Car repairs, medical bills, and vacations are just a few time-sensitive scenarios where you might consider taking out this type of loan.

Big changes in personal finances can also lead to unexpected expenses and require immediate financial assistance. But be warned: Short-term loans come with high interest rates, fees and long repayment periods. They also don’t offer the same collateral protection as bank loans.

What are short-term loans?

Short-term loans are small, unsecured loans that must be repaid within a year or less. Applicants often need to prove they have an income and a bank account in order to qualify for these types of personal finance products. As the loans are made without collateral and the credit requirements are lower, these types of loans charge a higher interest rate (up to 400 percent) than conventional personal loans.

>> MORE: 13 Different Types of Loans Everyone Should Know About

Benefits of short-term loans

These Non-Banking Financial Companies (NBFC) extend unsecured loans, generally small amounts for short terms, for less than twelve months. The benefit of these loans are-

Rapid approval timeline: The approval process for short-term loans is quick: you submit your application and some proof that you’re employed or have other sources of credit.

Fast Disbursement: You can get a short-term loan in just minutes, without having to complete any paperwork.

No collateral required: Unlike a secured loan, the short-term loans do not require you to put up collateral such as your home or car.

Lower credit score requirements: Short-term loans usually have less stringent credit requirements than other types, making them easier to get approved.

Why Short Term Loans?

Short-term loans are the best recourse in emergencies.

Do Personal loans suit you?

Personal loans require a lot of paperwork, take days or even weeks to approve and are not for emergencies. They check your previous financial transaction or take into consideration Credit Scores.

All such hassles are not applicable in short-term loans and at the same time your privacy is retained. You can repay the moment you receive your salary, the very next month.

You Prefer Using Cards?…Check-Out!

If you don’t have a credit card, what will you use in its place? Likewise, if your credit limit is exceeded and no longer on file with the bank (not active), then it’s useless.

You cannot use your credit card to pay back a credit card bill, and you can only get cash from an ATM if your bank allows for such transactions.

Choose the Best

Product is what makes a company’s customers happy: the speed and convenience with which they are able to receive their products, as well as any other services that may be offered.

Flypay, a leading fintech company using BigData analytics to approve loans in minutes, offers short-term financing with all these benefits and more. Unlike traditional methods of checking credit history or Credit Scores, which rely on banks and other financial institutions storing individual consumers’ data, their advanced BigData system measures a person’s digital footprint to assess their risk level.

Loan on Mobile App

What makes small loans offered by flypay pre-eminent are its distinct features. Unlike no credit check loans where you visit a bank or call a loaning agent; it’s all there on an “Mobile App”. You just have to download the mobile application on your Smartphone from “Google play store” and get started. Download Here

Zero Documentation and Credit Score

Short-term loans do not require a paper document or credit score. Simply click your selfie and upload the required documents in the app. Applying for an online loan and receiving your funds within 30 minutes of approval may leave you amazed.

>> MORE: Check Online Loan Eligibility Criteria & Requirements at flypay

Contain One’s Self-Respect

With flypay, your privacy is maintained as other people do not know about it. You will no longer feel embarrassed or uncomfortable in that situation.

Step-by-Step Easy Loan

The streamlined process for applying for a short-term loan on the mobile application of the company has made it popular among customers. After entering the amount, choice of repayment you get instant approval within 30 minutes, based on credit scores.

The bottom line

Short-term loans may seem like an easy fix, but they come with high fees and interest rates that can top 400 percent. Many loans require repayment in as little as two weeks.

Missing payments will negatively affect your credit score and cost you more in late fees, penalties and interest. This can lead to a cycle of borrowing that is difficult to break out of—if you’re willing or able at all. Research all your options before applying for this type of loan..