Thanks to the complex system of short-term loans and loans, it became much easier for citizens
to obtain on loan the necessary amount for a period of not more than one year. Let's consider in
detail all benefits and terms of credit programs, as well as their features.
Short-term loans are a program for issuing funds to borrowers for a period not exceeding 12
months. Similar loans are issued in banking and other financial institutions.
As you know, consumer loans are divided into two categories – conventional and accelerated
programs. They differ from each other in the speed of accepting an application and in the amount
of the interest rate. Accelerated loans are more expensive for citizens, however, it allows you to
get money in a few days.
There are three basic schemes for obtaining short-term loans:
– standard credit lines;
– term loans (one-off).
Terms and Conditions
Over 50% of world’s banks provide short-term loans like what’s offered by paydayUK. As a
rule, such a loan is issued only for certain purposes. Since the funds are provided for a strictly
limited period of up to one year, the processing of documents will not take much time.
Most banks do not check the credit history of the borrower, and its absence does not affect the
decision to issue money.
Before drawing up a loan, pay attention not only to its terms and interest rate, but also to
security, hidden fees and the possibility of early payment of money.
Benefits and terms
For the borrower, the main benefit is getting the money as quickly as possible. Such a loan
option is suitable if the funds were needed urgently (for treatment, surgery, payment for
purchase, etc.). It is also beneficial for a lender to provide such loans, because their interest rate
is two to three times higher than in standard credit programs. Overpayment can be 50% -80% per
Most financial institutions issue short-term loans for no more than 1 year. In some cases, the
payment term can be extended to two years. Everything depends on the amount, reputation level
of the borrower and the chosen credit program.
Preparation of documents
Before receiving money, a potential borrower must prepare a package of mandatory documents
to which the application form will be attached.
List of securities for individuals:
– Taxpayer's code;
– Other documents (at the discretion of the bank). For example, a certificate from work.
Legal entities must provide a list of the following documents:
– Certificate of incorporation;
– Charter and extract from the register;
– Personal documents of the director of the company (passport, code).
If you conclude an agreement with the bank on deposit of a deposit, it is also necessary to attach
documents for the right to own property. In a simple language Bank guarantee is a document
according to which the bank is the guarantor at the conclusion of the contract between the
supplier and the customer, and in case of failure to comply with the terms of the contract the
bank must pay the amount specified in the bank guarantee to the customer.