Payday loans need to be repaid in a month or when you get your next paycheck. Some payday loans will offer you a term of three months or so. Although rare but there are some payday loans that will offer you up to a year to repay. These payday loans are usually for higher loan amounts and not the few hundred that you may borrow for emergency purposes. Short term loans can have a term anywhere from a few months to thirty six months. Any loan with a term longer than three years is usually not considered a short term loan. Yet, there are some who would consider five year loan terms as short term loans.
The term of repayment is quintessential for any type of short term loans. It doesn?t matter whether you are opting for a personal loan or a student loan, unsecured loan or a secured loan. A longer term will make repayment easier. A shorter term will increase the installments and you would be a little stressed for money unless the installment is very easily accommodated in your monthly expenses. A longer term will compel you to pay more in interest. A shorter term will save you on that. But you need to do the math with the specific details of every loan.
Many lenders offering unsecured short term loans don?t want to give you a very long repayment term because they run the risk of stretching the repayment. The lenders want to recoup their money along with the interest as soon as they can. Some lenders will push for longer terms so they can make money on interest. You must avert the propositions from the perspective of the lender. Think what will work for you and what term will be the most convenient and pragmatic for you. Do compare the repayment timeline when you compare short term loans.