Short Term Loans
Short Term and Long Term Loans
Short term and long term loans are the two forms of term loans, i.e., loans which are disbursed to individuals upon agreement of a specific repayment tenure and conditions of the repayment. The term refers to not just the agreed clauses of repayment, but instead, the tenure and format of repayment. A short term simply has a shorter repayment term, and the long-term loan has a longer one.
At MyBorrowing, we understand just what a borrower wants when applying for either loan. From there, we take it further by providing the necessary advice and helping an individual avail either loan, which can solve his/her financial goals while at the most beneficial agreement conditions. Our professional team can help you connect with the most suitable loan term and lender.
What is a Short Term and a Long Term Loan?
A short-term loan is generally unsecured. The borrower is not required to provide any collateral to apply for this financial product and to successfully avail of it. These loans offer loan amounts of up to $5,000, which is the maximum loan amount that can be disbursed without collateral or security.
Short term loans are commonly disbursed as instant approval loans online. Loan amounts can be as low as $300 and immediately disbursed, although subject to various criteria. As there is no collateral or security involved, lenders attach substantial weight to a prospective borrower’s upfront eligibility criteria. Pointers such as the borrower’s credit score, existing dues or debts, current income, among others, are considered. All loan-related variables, including the eligible loan amount, applicable interest rates, loan tenure, etc. are calculated accordingly.
A long term can offer a much larger loan amount for disbursal. Such loans are primarily secured loans where the borrower has to provide collateral against the loan amount. This collateral is an asset that has intrinsic monetary value. Long term loans such as mortgage loans and car loans are where the borrower purchases the asset with the loan amount. The asset purchased becomes the collateral for the loan. There are other forms of long term loans as well as. For instance, loans against properties or LAPs offer substantial loan amounts – the borrower places a property s/he owns as the collateral and avails a loan amount against it.
What Situations Call for a Short-Term or Long-Term Loan?
Short-term loans
Short term loans are mostly emergency loans that can be availed at short notice. Most such loans are pre-approved, where the lender preliminarily calculates a borrower’s eligibility and offers an instantly accessible loan amount based on the same. Tenures for these loans typically extend up to 5 years or a maximum of 7 years.
A short term loan can be vitally helpful in many circumstances –
Personal Liabilities
Personal liabilities, such as existing dues, can be consolidated with short term loans. As with any loan consolidation strategy, the loan used to consolidate must have lower interest rates than that of the debt consolidated. These loans are commonly and conclusively used to consolidate credit card dues, which have comparatively higher interest rates but lower due amounts.
Healthcare Emergencies
Healthcare emergencies require emergency loans, disbursed in an instant, and lump-sum. Certain personal loans are available in the form of healthcare loans, offering higher loan amounts. Most such loans are pre-approved and disbursed as online cash loans.
Short Term Goals
An individual may even avail of a personal loan to one or more financial goals set for the future in advance with the loan amount. Availing a personal loan to make a high-value purchase is not uncommon. However, utilizing the funds from such an unsecured loan to make downpayment is advised against as it would lead to more than one running loan account and increase the total EMI outlay.
Long-Term Loans
Long-term loans carry much higher loan value, offering loan amounts over and beyond the $5,000 shelf for short term loans. These credits are primarily mortgage loans, utilized either for asset purchases or for other requirements. Tenures for these loans can extend till up to 30 years. End-use restrictions do apply to such loans, as explained below.
Asset Purchase
Mortgage loans such as home loans, car loans, machinery loans require the borrower to mortgage or hypothecate the asset purchased. A car loan is an example of hypothecation, while a home loan is an example of a mortgage. End-use restrictions are in place. The funds availed from this loan are expressly utilized for the asset purchase.
High-Value Expenses
Loans against property are a form of a long-term loan that can be used to make high-value expenses. The property, which can be residential, commercial, or even a plot of land, can be mortgaged against the availed loan value. There are no end-use restrictions for this mortgage loan. The loan amount can be utilized as and how required.
MyBorrowing is more than just a single portal to access the whole lending market. We offer a holistic set of consumer-centric services. We aim to assist and liaise a prospective borrower like you to access the most suitable loan product as per your requirements and connect conclusively with the lender providing that loan.
We connect consumers of the lending market with the most suitable lenders. Our reputation and experience in this industry help us add value in this process as more than just a participant but as a mediator with the focus completely on your requirements.
What is the Maximum Value I Can Apply for a Short-Term Loan and a Long-Term Loan?
At MyBorrowing, you get channeled access to leading financial institutions on priority. Our reputation in this industry trickles down to as a reputed borrower. We can help you easily avail easy loans from $300 to $5000 without the hassle and at the most competitive market rates. Let us help you prioritize your financial needs.
Requirements for Emergency Loan Application:
- 18 Years of Age
- Proof of regular income for at least three months
- Australian Resident
- Valid Phone Number and Email
What to Expect from MyBorrowing
Certified and Experienced
MyBorrowing is a certified loan searching company that will help you avail of a trusted and certified loan for any needs. With a variety of loan options and loan durations, our clients will find a completely tailor-made experience for an easy loan process.
MyBorrowing has developed relationships with multiple lenders that might otherwise not be available for easy access if you were to apply on your own. If you have further questions about our services, feel free to reach out to our expert loan team through our website.
Lighting Fast Loan Process
Experience the ease of using an online lending service with the simple application, approval, and acquisition process. Traditional loan processes can be long-winded and require a lot of effort. Our newly designed user interface is designed to make all the steps as simple as possible.
Our customer service team and trained professionals are available to assist you with obtaining loan information or help guide you through the process. If you are having questions about our services, feel free to contact us, and we will respond to your needs immediately.
Loan Acquisitions
To receive a loan from MyBorrowing, we have ensured that our application process and loan retrieval processes are as easy as possible. To take control of our loan programs, take a look at our website to find the customized loan plan creator. MyBorrowing ensures that every lender is both certified and trusted by our deep web of connections. Our lenders are looking for trustworthy candidates, and you are looking for trustworthy lenders. MyBorrowing connects the two quickly and easily.
Industry Leading Interest Rates
MyBorrowing has established a connection with one main goal in mind; providing interest rates that are acceptable to our clients. Through detailed research and modern loan market trend analysis, we can provide the most effective loan terms for our clients, including the most competitive interest rates.
Transparency and Straight-forward Communication
Getting a loan online is easier than ever, thanks to MyBorrowing’s new online platform. The revolutionary user interface makes it easy to get vital information about our loans. You can also reach out to our team, who are on-call to help you out at any time of need.
Get in contact with us as soon as possible to ensure that we can get you a loan to help you out with your financial needs. Our team is ready to take a look at your application and get you a loan from a trusted and verified lender.
Emergency Loans FAQ
What Do I Do If I Can’t Make the Repayment Plan?
If you need to make adjustments to the agreed payment schedule, feel free to get in contact with us as soon as possible, and we can restructure the plan. We are here to help you ensure that you can make the payments with no fear of additional charges.
When Can I Access my Loan?
After you are approved for a loan from MyBorrowing, we will get you in direct contact with your chosen lender. Upon completion of the contract and guidelines, your loan value should be available to you directly in your bank account within a few days!
What is the cost of an Emergency loan from MyBorrowing?
Short-Term Loans at $500 up to $2,000
- Established Fee: 20% of the principal amount
- 4% of the principal amount per month.
- Interest-free on our loans between $500 and up to $2000
For an overall customized look at how much YOUR loan will cost, choose the loan cost tool on our website.
What Do I Do If I Need to Change My Contract?
MyBorrowing has a long list of trusted lenders that will offer loans to people with a variety of credit scores. Submit an application today and our expert team will help you get a loan that is built for you as soon as possible. If you need to make changes to the contract based on your financial situation, contact both the paired lender and us to discuss the future of the contract requirements.
If you are looking for an experienced and connected lending company, you can trust MyBorrowing to help you through any financial situation. Our team is here to guide you through the loan process and offer you competitive loan options with amazing interest rates. Call us on 1300 762 731. Feel free to contact us or get started with your application right away. We are here to help you get on track to a better life through finance!