There are occasions in everyone’s life when you feel like you have a shortage of cash. Your salary might be due in a fortnight, but you do not have the liquidity to meet your urgent requirements. A short-term loan can help you tide over the temporary crisis.
Here are some types of short-term loans that you can apply:
- Credit cards - Use your credit card to purchase your essential requirements. You could avail the cash advance facility on your credit card in an emergency. The advantage of using your credit card is that you get free credit (without interest) provided you repay the entire credit card bill on or before the due date. Cash advance facilities, however, attract higher interest rates.
- Personal loans - You can apply to a bank or a financial institution for a personal loan. The approval of a personal loan can take between 2 - 3 days depending upon your profile. It is one of the best ways to get money quickly into your account to meet emergencies.
- Short-term loans through mobile apps - Yes, nowadays you have the facility on mobile where you can get a personal loan without having to visit the bank. Download the app and register yourself. The platform follows a simple verification process following which it links you directly with the appropriate lender. This facility has become popular today because of the convenience factor. You need not go to any bank to apply for a loan.
We have discussed three types of short-term loans that can help you tide over any financial emergency in life. You have other avenues as well. We shall discuss them in brief for your benefit.
- Borrow from friends – It is not a new phenomenon. Everyone borrows from friends and parents when they face an emergency. Friends are always glad to help out as well.
- Peer-to-Peer lending –This concept is popular in countries like the US. It is gaining in popularity in India too. There is an intermediary in the transaction that arranges the interactions between the lender and the borrower. You can get loans at comparatively low-interest rates as compared to personal loans.
Now, that you know the short-term borrowing options, you are in a better position to face a financial crunch, should it arise at any point in your life. Feel free to explore multiple options, no matter what your requirement for a short-term loan might be.