Talking about loans, when one enters the loan market, he or she starts feeling overwhelmed, when looking at the reason behind this behaviour of the fresh loanee, studies found that the bombardment of so many loan options makes the loanee feel stressed, unable to decide which loan types suits best his case, which further ends with him being in a more complex debt trap. This whole bizarre could have been avoided if he or she would be financially literate, now being financially literate, I mean the basic concepts of lending, the pros, and cons of the lending concept, the sad part is such important surviving skills are rarely taught in the educational institutions, leading to self-learning of the topic. Since the concept of money is involved people prefer not to talk about it in public, as if talking about the money would make someone withdraw it from your account.

Leaving these issues behind let’s focus on the main cause, the financial literacy of the people, which could be achieved by reading, and learning the basic concepts of the economy. In this article we’ll talk about short-term loans, now loans are of two types based on their timeframe of repayment aka the short term- shorter duration and the long term- longer duration. Generally, the time frame is decided by the apex bank of that nation, the federal bank in the case of America, short term is approximately within a year of repayment types and longer than that are often counted as long term. These durations keep on changing.

Variable Needs And Amounts

As our title says the right short-term for our needs. Needs vary and so is the loan amount that one requires to fulfil the need. Now generally people prefer a 200 pound loan, this amount is the most repetitive short-term amount, which tends to satisfy the need of the hour.

One needs to be mindful of the purpose of loans, if the situation can be handled without the loan go ahead, if the loan is a must, keep an eye on the various options, compare the rate of interest of all, the liabilities, easy funds accessibility, and don’t forget about the impact on your credit score.

The Application Process

The reason for the preference for a 200-pound loan as the most applied loan is its easy accessibility and quick fund usability. Here, the loanee often gets into the dilemma of what to do next, and this needs to be decided on your own since the time frame and situation vary, if you need easy and quick access same-day loans might be the best option and if you want a hassle-free repayment option, the payday loans suit your boat. A payday loan’s EMI is deducted as soon as the monthly cheque is received by the loanee, and one needs to just give solid proof of his income, no collateral and excess paperwork is needed.

If you are a first-time loanee, no need to panic, just compare and search for the loan options before applying for the loan, and make sure to check the credibility of your creditor, cases have been observed where the laundered money is supplied to the loanee and the loanee who was innocently got in trouble with the authorities, go for the reliable sources, which is not a difficult task, every creditor is certified by the authorities, have a look at it, see the previous loanee experience, and you are good to go.

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