Needs may be of any type. Some may be short term or some may be long term. Needs whether big or small have to be fulfilled without any delay. These are very important and if not fulfilled within the stipulated time span may create problems. To solve all such needs in time we have introduced short term loans.
Short term loans are offered for a period of few weeks only. This time span is not fixed and varies as per the needs and requirements of the borrowers. These loans are usually granted for a very small amount. This amount is also dependent on the needs and the financial creditability of the borrower. In most of the cases, it remains around 1000 pounds.
Presently all such loans are offered to the permanent citizens of UK only. A person should also have attained an age of 18 years before applying for the same. He or she should also have a valid bank account in any bank of UK. It is a very important condition. It is this bank account which is credited by the loan amount once it is approved.
These loans are generally offered without any collateral. It is because these are of very small duration so the lender sometimes does not ask for any security. This is a very important feature of such loans. It gives them an edge over other loans. But this has a demerit too. A person has to pay higher rate of interest on such loans. This is because of the risk the lender is bearing in getting the loan approved without any security.
But as the loan is generally offered for a very short duration, this does not have much impact on the overall loan repayment structure.