There are some people who apply for short term loans but don't have the intent to pay on time and some don't intend to pay at all. A staggering majority of borrowers have no intention of missing payments and they don't want to deal with any financial debt. However, there are times when a financial crisis or some pressing obligation can squeeze the available cash at hand. This can derail any scheduled repayment or jeopardise a financial commitment. Such scenarios will obviously invite a fine, penalty or late payment charges levied by the lender.
When borrowers compare short term loans, it is imperative to consider the fine, penalty or late payment charge. Considering the principal loan amount, rate of interest and term of repayment of short term loans is a quintessential need. Reading the terms of agreement or clauses that will be legally binding is also necessary. In the same vein, knowing what kind of charges you would be liable to pay is mandatory.
There are lenders that would not be explicit or forthcoming about these charges. Some may want to conceal these charges and some may be too demanding. You should not agree to pay an unreasonable late payment charge or any fine. You should also have a grace period or some kind of consideration that treats you as a credible borrower.
Read the fine print, check the grace period for every repayment, look up the escalation process or if you can rework the repayment dates, the direct debit or cash deposit and how you can effectively deal with the delay. It is best to avoid any delays in repayment and to be sure of it while applying for short term loans. But everything cannot be foreseen so you better be aware of the fallouts of delayed repayment or a payment you may have missed.