Often when people think of getting a personal loan, they are focused on long-term financial agreements. However long-term agreements are often rigid and inflexible, and the time it takes to apply for a loan, get approved and receive the money make them impractical.
With a little research, customers can easily find loans that have fair interest rates and loan terms that work for their budget and needs. Loan amounts are generally smaller than long-term loans but can be up to anywhere between R4000 and R8000 depending on the provider. Although interest rates can have a higher representative APR than more extended arrangements, due to the small duration of the loan term the difference is less dramatic than it might otherwise appear.
However people can also apply for a loan on a more flexible, short-term basis. This ensures that funds are available as and when needed, and often on favorable terms.
For example, a customer might take out a small loan of just R3.000 to cover the cost of veterinary treatment, a travel ticket or another small incidental cost that needs immediate payment. The Personal loan term can be tailored to the needs of the individual but many are as brief as one or two months before full repayment, providing a valuable buffer between sources of income or other injections of financial fluidity.
With a representative APR of just 0.1% per day in addition and a small service fee per month of as little as R50-R70, borrowers will pay back just R587.60 more than they originally borrowed – a small price for the ability to get a vital injection of funds in a crucial period.
Many short term loan providers are able to give such calculation examples on their websites, giving clients an open and clear look at the funds available to them and the terms of their repayment. Of course it’s important for borrowers to understand that loans of any kind do require repayment – and that there is always at least a small additional charge.
However by using these calculators and considering your own circumstances, it’s possible to get a loan that works for your situation and gives you the financial flexibility required to deal with life’s unexpected challenges and costs. To get the most out of a short-term loan, all it takes is a little research into trusted providers and your own ability to pay.