Loans are useful to individuals who are after covering some additional expenses that are not in their budgets. Short term personal loan usually has a tenure of a few weeks to a few months ( Due to its shorter tenure, the loans are often disbursed very quickly compared to other long-term loans. Herein are reasons where short-term loans can be useful:

To cover urgent and unexpected bills

You can’t always predict what’s coming. So, instead of canceling the trip because you can’t afford, get a short-term personal loan. It will cover all the expenses that are unplanned and give you the flexibility to repay over a few months.

Credit card repayment

Spent too much on your card last time? Planning to repay the minimum payable amount and get away with it? That might just be too expensive. If you fail to pay the whole due amount, your credit card company will charge you a huge interest (ån). Instead of paying the minimum amount, you should consider getting a short-term loan. These are much cheaper compared to a credit card interest. And you still pay the same amount that you wanted to pay earlier.

Covering festival expenses

You simply can’t escape the additional expenses during festivals. You need to go shopping for yourself and your family, buy presents for family members, and decorate your house and what not. To cover such expenses, the short-term loan might just be the best option.

Fixing a bad credit score

If you have a bad credit score, banks will deny giving your personal loan of a higher amount (ån). However, since the number of short-term loans is lower, many lending platforms will give you the amount. After taking a short term loan you can start repaying them on time to rebuild your credit score. Many credit institutes will also provide you with a higher loan amount if you build a good track record.