When next you think of getting a

loan, time should be among your

top priorities. The length of your

loan term can be just as important

as t he amoun t o f money

borrowed and the interest rate.

Owing money for long periods and watching the interest accrue can take its toll o n a b o r r o w e r e m o t i o n a l l y a n d psychologically. Short term loans, on the other hand, helps in cash emergencies and can be paid back soon enough, making you worry-free of debt.

Better chance of approval

A lender of short term loans is not likely to request landed property or other highly tangible assets from you as collateral. Take a payday loan for example, the regularity of your income is relied upon. You also have a better chance of getting the loan because your nances are much more predictable to lenders in the nearest future than in years to come. No one can condently predict your earning power nor the economic situation of Nigeria in the next two years. Hence, long term loan applications are handled with more stringent conditions.

Suitable for emergenciesApplication requirements for short term loans are readily available items. More so, many lenders now carry out disbursement within twenty-four hours of a p p l i c a t i o n , p r o v i d e d y o u r documentation is complete. You are also able to access funds for emergencies that would have been considered trivial for long term loans.

Numerous lendersUnlike long term facilities that have few providers, there are numerous lenders of short term loans with wider spread. Hardly would a community not have a micronance bank for instance. The large number of lenders also make short term loans competitive and innovative.

Boost your credit history

Getting short-term loans and making regular repayments in a timely manner is one viable strategy for building a good credit history. Also, short term loans accommodate new borrowers with no credit history to access funds with ease. Even individuals with bad credit history can be granted short term loans (e.g. payday loans and cash advance) provided they are not already over-indebted.

Release No. 37, 1st July 2016.

WHAT YOU BENEFIT FROM SHORT TERM LOANS

CRC Credit Bureau Limited

In association with Dun & Bradstreet

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