Traditionally, short term loans would take a few weeks to be processed, approved and for cash to be disbursed by a bank or financial institution. Today, you can apply for short term loans online, complete the whole process using digital documents and you could get cash in a matter of hours. The simplification of the approval process and quick disbursal of cash certainly helps anyone who needs some money urgently. But this superfast approval of short term loans has some pitfalls.
In an emergency scenario, people are less likely to be diligent. Desperate times call for desperate measures, so the saying goes. It is necessary to be observant, diligent, patient and aware of everything about short term loans and particularly what one is signing up for. As a lender moves from application to consultation, phone call to emails, disbursal to crediting the cash into your account, it is quite possible you would rush through the terms of repayment, you may not notice the fine print, the asterisk, the exceptional clauses or even the late fines. It is quite possible you would miss out on some of the key components of the loan.
Short term loans should be taken seriously regardless of the loan amount. Even a hundred pounds in short term loans can eventually cost you more than two hundred or even three hundred dollars. Rates of interest for unsecured loans are high, there could be additional charges, steep late fines and you may even get prompted to go for a higher amount without realising that you would struggle to repay. While superfast approval is desired and necessary for those experiencing a cash crunch, it must not come at the cost of diligence and being sure of what you are signing up for. Clarify, crosscheck and confirm before you sign on the dotted lines.