All There is to Know About Short Term Loans in the UK

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A loan is a sum of money that could be obtained from a bank or any other financial institution with the main intention of paying it back. This is usually requested and received by an individual or business organization that is in dire need of money. Either with the purpose of growing the business, needing the money for studying purposes, to build a house, buy a vehicle or whatever activity. In most formal instances loans are provided only if the individual or business organization meets the necessary requirements. These may vary from place to place and some institutes and banks may charge an interest at the time of paying back.

What is a Short Term Loan?

Loans can be categorized in to two parts, namely; short term loans and long term loans. Short term loans are the loans that have to be paid back to the lender in one year or less. These are unlike; long term loans not of big value and the interest rate maybe lower. These are usually used for temporary activities like, to buy stocks for a business organization, pay bills or fee, or so on.

Short Term Loans in the United Kingdom

In the United Kingdom, short term loans are an alternative to pay day loans. By pay day loans, it simply means loans scheduled for not more than two months and paid in one single payment. Short term loans on the other hand can be paid back to the lender or financial institute in installments. This is the most convenient type of pay back mode for the borrower. It is also important to keep in mind that the more time taken on borrowing the money, the more interest one will have to pay. Therefore, it is best to note that, the sooner you pay back, and you can save so much more money.

The Financial Conduct Authority or the FCA, short term loan interest value currently being charged is 0.8%.

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Trusted Short Term Loan Lenders in the United Kingdom

United Kingdom just like any other country has an economy level that some people fail to keep up with. Taking a student’s educational life into consideration, college life is the most expensive one. Many students face the hardship of paying their student fee and etc. and finding a job also may not be easy for everyone. In such cases, they always turn towards financial institutes that will lend them a student loan. In this case, depending on the college, the required amount of money may vary from student to student. It is important in such cases to borrow the required money from lenders that provide the best credit solution for one’s financial need.

Short term loans can be provided only by a direct lender. These direct lending institutions act strictly under the laws of the FCA. For more in-depth information about short term loans, you should read this article

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