In present times, every sector has developed beyond the imagination of people in the past. Nobody ever thought a man could fly, but then came along airplanes. Nobody thought we could bring enlighten our homes without fire, but then Thomas Edison invented the light bulb.
Similarly, no one imagined that we could keep our hard-earned money not with ourselves, but in a bank and it would be much safer there. Nobody thought that the same institution would give us additional money just for depositing our savings in it. And indeed, no one ever thought that we could ask a banker to provide us with his money without knowing us as a loan.
The world today has indeed developed beyond imagination. However, these advancements have only eased the life of every human on this planet.
Turning back towards the concept of loan, most of us have taken a loan at one point or another. And it is not something that one has to hide. In an era where inflation is as common as the common cold, financial troubles are bound to arise. When you face the hot waters, choosing to opt-out of them, rather than burning in them will always be the right choice.
Whatever kind of financial aid we get for ourselves, it will always be seen as the saving grace. Whether you get your home financed or get a new car with the lender paying for it; you will ever feel elated.
However, short term financial assistance that provides you money as a lump sum entices the borrower, more than the other kinds. Why?
- Because you have the entirety of the borrowed amount in your hand. It is unlike a student loan or car finance, wherein the lender pays the third party, and you pay the lender back.
- Because you have the total amount with you, you can choose to do whatever you deem fit with the money. It is yours to spend. The options for the borrower increase ten folds with such kind of finance. You can renovate your house; you can get a new phone and then see new places to know how good the phone’s camera is.
- And thirdly because the loan is short term, the repayments would not last as long, consequently your burden will be far less.
This is why, there a lot more people today, who decide to take such financial help and satisfy all their desires that were impossible to achieve otherwise.
CHOOSING THE LENDER
As I have already told you that the world of financing has developed by leaps and bounds in the present times. Now, it is not just the banks which will get you down from up the financial gum tree.
However, more options mean more confusion. It is far easier to choose from two rather than two hundred. So, when you decide to take a loan, consider the following;
- What percentage of interest is the lender charging? Compare it with market trends.
- What level of flexibility is the lender offering in terms of repayments? Can you choose your own instalment date?
- How tedious is the loanstock application process? Is the lender asking too much documentation or is he satisfied with just your British passport?
- The lender approval rating, if it is high, you can quickly get a loan as well.
- What kinds of loans is he offering? Whether they suit your interests or not?
If the lender answers all of these questions favourably, then look nowhere else and choose him.
CHOOSING THE CATEGORY
Once you have selected the lender wisely, the next step is to choose the category of loan that suits you and your needs the best.
Short-term finance is basically when the lending period is for a year or less. You would think that if that is the case, then there can’t be many options, but you are wrong to think so.
The categories of short-term loans are very diverse. It is your need that will help you to decide which one to take.
I’ll explain the same using a few illustrations.
- If your utility bill is too high this month, and your salary got deducted because of your delay at work. You have to pay the bill, or else you landlord will have your head for dinner, and you also know that the next month you would have enough money to pay it. So, taking on a loan for a year would an unwise, you choose a loan that has duration of just a month or so like payday loans.
- Imagine you are on a Euro-trip, you lost your wallet. You have no source of financing yourself anymore; in such a scenario, you can go for quick loans that are easy to procure and will provide you with the money very quickly like their name suggests.
- If you have fallen severely sick and the doctor has asked you to get a costly test that your insurance won’t cover. You do have a steady flow of income each month. However, at that point, you need more than your savings. Your sickness will not allow you to go out of the house for long, and you can choose text loan lenders to remedy your problems. These loans require you to text your application, and once it is approved, the money will be wired into your account in a matter of hours.
These are just a few situations that I have mentioned so that you get an idea about the kind of loans that can be availed by you.
In the end, I would want to emphasise that whatever your financial need may be, if getting a loan can satisfy it, then you should choose to take one.