Currently the short term loans market offers a range of different repayment terms for the loans being offered by lenders.
This means there is a good selection of borrowing options available to consumers who are looking to borrow a small sum of money over a short period of time. For many consumers there are times when an unplanned and therefore unpredicted cost can present itself on an emergency basis. As such there can be a need to obtain a sum of money in a manner which is timely and fuss-free. Examples of these circumstances could be a broken Freezer or an emergency dental bill, where the need to make payment is somewhat urgent but equally not a cost which was expected to arise. These sort of financial requirements are often one-off in nature meaning that the cost will not continue month in and month out and this is when short term loans may be able to help. Short term loans are not designed to assist consumers in need of long term financial support due to the nature of the loan, the amount lent and the repayment terms made available. Where consumers are looking to satisfy the needs of longer term financial requirements, such as the purchase of a new vehicle or the cost of a family holiday, the resources made available by short term loan lenders are unlikely to be suitable. Today we will be looking into the repayment options which are now available for short term loans and as such, how they may be able to support consumers who are looking to borrow a small sum of money.
Generally speaking the loan values being offered by short term loan lenders range from £100.00 through to £500.00.
As with any consumer market place there are exceptions to this in that some lenders will consider smaller loans at £50.00 and equally at the other end of the scale some are able to consider borrowing up to £1000.00 or perhaps more. Typically a loan of this nature is for around £300.00 to £400.00. Given that the application process of short term loans is, in the vast majority of cases, online based, the repayment terms proposed by the lender will be made clear as part of the application process. When applying consumers will have the freedom to select the loan size required and quite often will be asked by the short term loans lender to detail the general purpose for the loan. Once the loan amount has been requested and the application completed in terms of the customers personal information, this is when typically the loan repayment terms will be presented. Of course depending on the specific lender there will be a range of repayment terms made available, usually meaning you can choose from more than simply one repayment option. These terms can range from anything from a single month through to 12 months, meaning that, depending upon the individual needs of the applicant, a 3 month term could be selected or even a 6 month repayment term. While the longer you take the loan over the more it will cost overall, these extended repayment terms are designed to give the applicant choice and flexibility when making their borrowing choice.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290% Maximum APR 1351%
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Author: Internal Marketing Department