There are various types of loans offered by banks, non banking financial corporations, state and federal agencies as well as private companies. The most common types of loans are those for buying a house, car, funding education or to fund personal expenses such as bills and retail accounts.
As such they can broadly be categorised into long-term and short term personal loans.
What Are Short Term Loans
Short term loans are those that typically have small amounts approved for a short period of time. If you consider the larger loans like mortgage or car loans, then the standard term can be as long as 20 years. Such loans are long term loans. Short term loans are typically termed for a few days, few weeks or at the most a couple of months. The maximum amount you can borrow is also much lower – mostly around R 4000 max if you’re a first time applicant – and the interest rates will be higher. The approval process is also much quicker and you can get cash into your account within a day in most cases (for more, see instant short term loans)
This makes short term loans the perfect solution to temporary financial problems. Such examples could include pending bills, a debt to settle, some medical or personal emergency that would need some money which you do not have. Similarly, you might need to meet certain familial (such as Christmas) or social obligations and if your next payday is distant then you might find short term loans a viable solution.
Short term loans can be applied for by anyone provided you are an adult, have a job or business, have all necessary identification details, bank accounts and a proof of your income. You do not have to provide any extensive or confidential financial information and the application online is totally paperless!