SHORT TERM LOANS - PowerPoint PPT Presentation

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Short term loans are essentially cash advances that are meant to be repaid over a period of less than one year. These types of loans are usually taken out by businesses, especially businesses that rely heavily on production, as they have a constant need of financing their businesses. – PowerPoint PPT presentation

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Short term loans are essentially cash advances
that are meant to be repaid over a period of less
than one year. These types of loans are usually
taken out by businesses, especially businesses
that rely heavily on production, as they have a
constant need of financing their businesses.
There are certain businesses which do not qualify
for a line of credit from a bank due to several
reasons. This is where short term loans come into
the picture where it is relatively easier to
finance your working capital needs and
There are some things we should know about short
term loans. Let us discuss some of these features
including some of the major advantages that these
loans could have in comparison to other short
term lines of credit.
You might be an expert in budgeting but there are
always these unprecedented financial needs that
you will most definitely incur- such as car
repairing, a doctors visit or in the case of
businesses, a delay in funding. These needs can
really create a large ripple in your income and
create a shortage of money. 
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There are some people who swear by credit cards
and will not settle for anything other than a
credit card, even though credit cards carry a
much lower rate of interest than other types of
short term loans, there exists a danger in the
constant dependence on credit cards in the form
of balance carryovers and an ongoing interest
charge. So what might seem as a low interest rate
eventually converts into a higher interest rate
due to balance carry-overs. There are some types
of short term loans for students which can be
described as follows
Emergency Loans Emergency loans are usually used
by students who require a loan for either their
expenses or other unprecedented expenses that
could occur while educating themselves. Living
Loans These loans are also used by students who
require a sum of more than 200 pounds for their
living expenses but provided they produce a
company letterhead detailing their source of
income. This amount may extend beyond 200 pounds
but it is usually lesser than 350 pounds.
Financial Aid Advance This is for students whose
current quarter funds are usually delayed. This
is usually termed as a bridge loan and they are
meant to provide a certain portion of the funds
required under the method of electronic
disbursement. A student can only borrow under or
against current quarter disbursements.
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There are benefits of short term loans,
especially for students which are as
follows They carry 0 interest charge which
means that the amount you borrow is the amount
you have to pay back, provided you pay back
within the stipulated period of time. The terms
and conditions of repayment are usually framed
considering the needs of students and are usually
extremely student-friendly. Where there are many
types of short term loans which carry a
substantial origination fee, there is absolutely
no charge for you to process your loan and
printing the cheque.
Since these loans are usually full-proof, there
is only very simple information that is required
to complete these loan procedures and the
application process is considered to be one of
the simplest ways of loan transferring. There is
a rapid approval process which means that within
a few minutes, you can apply for a loan and
within a few minutes, you can walk away with the
loan cheque in your hand.
However, there are some terms and conditions for
even a student to apply for a short term loan
which should be discussed further A student
applying for a short term loan should hold no
previous record of a default repayment on the
short term loan within the past one year of
applying for the short term loan. If you have not
repaid the borrowed amount by or on the due date,
penalties are bound to occur. All the past loans
are subject to late fees and other collection
costs. While you are in the repayment period, you
will need to keep all the contact information
up-to-date and it is essential that you respond
to all loan correspondence promptly.
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There is a certain format which one should know
about while applying for a short term loan. This
is usually beneficial for people who are applying
for a short term loan, for the first time. We
will understand this in a few steps. There are
certain loan offices which are identified for
specifically short term loans. All one needs to
do is fill out an application form filling in
some basic details like your name, address, your
university ID number and telephone number. You
will need to mention the kind of loan you are
opting for and your university status.
You will need to provide picture identification,
a drivers license, state ID card, passport apart
from any additional information that a loan
processor might ask for, such as a letter from
your employer in the case of a living expense
loan. There will be a promissory note that you
will have to sign, it is essential that you read
it completely and ensure that you have signed it
once you have understood it completely. Accept
the cheque and ensure that you cash it in the
banking institution of your choice and most
importantly, ensure that you use it for the
purpose that it was intended for. The last step
is repaying the loan amount by the 20th of the
next month to remain in good standing and this
will make you eligible for another short term
loan. Your due date will be printed on the
promissory note that you should have read and
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Thank You
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