Usually, short-term loans must be paid off between 6 to 18 months. If you’re applying for a loan to take care of an emergency, short-term loans allow you to repay the loan amount in about a year so you can move on to other things.Sep 30, 2019
As the name suggests, 3 month loan is a loan taken over a 3 month period. The loan typically has equal repayments for each month. Though the last payment might be slightly higher than the first two months payment. 3 month loans are a preferred option when you need a loan but not with a high cost of borrowing.
5 Types of Short-Term Loans in India
- Trade credit is interest-free and is usually extended for 30 days.
- Bridge loans are useful while you're waiting for another loan.
- Demand loans can help when you need urgent financing.
- Personal loans offer a high loan amount and can be used for many purposes.
Payday loans are sometimes harder to pay back than a traditional loan, because the lender did not verify your ability to repay before lending you money. Payday lenders don't generally assess your debt-to-income ratio or take your other debts into account before giving you a loan either.Aug 5, 2019