The Short Term Loans are the types of loans that are given to the borrowers on short term basis
. This means that the repayment time period that is allowed to the borrower is very short and limited. It can vary from some days to some weeks but not more than that. In the market these types of loans are very much popular and people like them in taking as they feel comfortable with them. The characteristics of such loans make them on the best types of loans in the market. The people who need money on urgent basis just for short period of time, these types of loans are best for them.
The types of Short Term Loans are different and it depends on the government terms and conditions also. Basically the types and variations specify that which types of such loans are best for this area or culture or for that civilization. It is very difficult to summarize all of the types of short loans here but some of them are discussed below.
First of all the most popular and most taken loan type of the Short Term Loans is the payday loans. This is a type of loan which allows you to take advance on your paycheck. This means that if you are an employee then you qualify for the payday loans. You just have to apply for the loan and it is granted on the paycheck of your next month salary. When you get salary of coming month, the amount of loan is pending on that salary and most of the times it is deducted already. The companies where number of employee are more than hundred usually provide such loan packages to their people so that the smaller requirements of the employee are fulfilled within the banking and financial system of the company. Then on payment of next salary, the amount is deducted automatically.
Another very familiar type of loan is the bridge loan. This is the loan which is basically seen when you purchase home necessities. This is mostly taken for a shorter period of time. The multiple types of expenses are fulfilled with the help of bridge loans. This is mostly happened when a person buys a new house and yet his old house is not sold, he needs some money in cash from which can help him financially. This is often used to cover the mortgage expenses. The time period to repay the amount of loan is mostly short and the interest rate is usually high on that type of loan.
A business loan is another type of Short Term Loans that a professional businessman can take enough funds. The business loans are best for the small business types. Small companies take such types of loans for fulfillment of expenses like payment of salaries to the employee or payment of electricity bills.