Read This to Know About Short-Term Personal Loan

You may be managing your money very well, in spite of this there can always be an unexpected situation, when you may need money very urgently. Just imagine a situation when you suddenly met with a car accident and you need to repair your car urgently. Or there may be sudden illness in your family and you need to pay for operation expenses immediately.

It is quite possible that you may not get any loan from your friends or relatives at that moment and under such situation, only a short-term loan can rescue you from such situation. Short-term personal loan, in fact is unsecured loan, which is available to everyone who is having a regular source of income.

You may visit the website of Loanpig.Co.Uk to know more about such short-term loan where you can get Uncle Buck loan alternative. Loan pig is one of the leading providers of all types of short term as well as payday loans in the UK.

How short-term personal loan really works?

It is different from traditional personal loan, where you usually pay back over many years. Here this short-term personal loan should be paid back within a year. Based on the lender that you select and also your creditworthiness, your loan will be processed. This will work in following way:

  1. First you need to apply for loan online or to storefront lender.
  2. Lender will check your credit score or other documents for evaluating your financial history.
  3. After the lender approves your application for loan, you will get loan offer with applicable interest rate as well as their terms. Lender usually answers you back within an hour.
  4. If you agree to all terms and conditions then you need to agree to loan offer and then receive your money. Within 24 hours your money will be transferred to your account in bank.

How much you are eligible to borrow?

As direct lender, you can get loan from Uncle Buck who will offer short-term loans, which will be ranging anything between £100 and £1,000. However for first time borrowing you can get up to £500.

Your repayment amounts along with interest may slightly change based on your pay date. You can get exact figures once your loan documentation is processed.

What are the interest rates of any short-term personal loan?

The short-term personal loan might rescue you when you are in trouble, but it can become a very expensive way of borrowing money. As compared to traditional loans, most of the short-term personal loans will attract very high interest rates.

Also, interest rates may depend on lender too, and the actual short-term loan type that has been offered to you. Your past financial history will also have its contribution. The rate of interest may vary widely, and in some cases payday loans will charge as high as 400% APR, which is also excluding all the necessary fees required to process your application.

Rate of interest will vary based on type of lender, hence it is very important to do little research and compare offers from few different lenders and find the best interest rate that you can qualify.