Short term loans must be compared holistically. Every aspect of the loan, every term and clause of repayment should be pitted against the same of another lender to find the best loan available. It is very common to have short term loans proposing similar terms. But you should not indulge in presumptions the terms are same or identical. You must find out yourself and meticulously crosscheck.
One of the most significant elements of any loan is the rate of interest. Whether you are going for secured or unsecured short term loans, home loans or personal loans, the rate of interest is the single most important factor that will affect your repayment and thus your affordability. You must compare the rate of interest in the right context. Adjustable rates and fixed rates should not be mixed up. Monthly rates of interest are different from annual rates of interest. Don?t go for aggregates or what is being shown to you as a representative rate of interest. The real rate could be very different from average, aggregate or the representative rate.
Compare rates of interest of short term loans only when you get a loan offer. The approval letter or the confirmation email wherein you are notified about the loan being available for you, when you get the paperwork to sign or to provide your signature digitally, you should check the rate and compare this one with other propositions that you have at your disposal. A lender may quote a lower rate to entice you and then give some reason to offer a higher rate just when you get the fine print. Do not compare unalike scenarios and two or more rates that won?t apply for your repayment.
Compare the actual rate of interest, its impact on your installments and also if there is any interest waiver should you want to repay the loan before the completion of its term.