Short term loans are a method of borrowing a small sum of money. Short term loans are therefore best suited to immediate costs and not designed to serve the on-going costs some consumers face. It is important to recognise this simple fact because it is fundamental in ensuring these loans are truly suitable. Where someone may consider a traditional bank loan for the purchase of a new car, a short term loan would be better suited to cover the cost of a one-off car repair. With this in mind, this is why short term loans have a very specific application and approval process, which is not designed to mirror that of larger lending resources. The loans available here range from £100.00 to £500.00 in value with some lenders offering both smaller and larger sums, depending on the applicant and specific service of the lender. Equally the terms of repayment on offer here do not mirror the terms which are offered by larger and longer term lenders; like a credit card provider for example. Instead short term loans lenders look to serve the needs of consumers looking to repay their borrowing in a period less than a year. As such, there are often repayment terms which extend over a number of months, starting from just one. This means if suitable to do so the loan can be repaid in a single instalment or 3, 5 or 6 monthly instalments for example. Ultimately although the resources on offer from short term loans lenders are small, the idea is to offer flexible and consumer friendly borrowing choices.
So what then are the application steps required for short term loans. As mentioned above the application process begins with an online based application form. The forms myself are aimed at allowing consumers to submit an application with confidence, meaning all the required information is displayed accurately and clearly. Modern website designing means the entire application can often be completed in as little as only 5 minutes. Once submitted, short term loans lenders will use a series of well-established and knowledge driven decision tools to decide whether the loan requested is suitable and can therefore be approved. Usually to reach the decision, the lender will conduct these checks on both an electronic and manual basis. This means not only will a computer programme assess the application but so too will a designated Underwriter. Often many applications of this nature will not even reach a manual Underwriting stage if the electronic checks are not successful in the first instance; this is therefore why a lending decision can often be given in a timely manner. Most lenders will aim to approve (or decline) an application within a matter of hours and certainly the same working day. However, applications will only be granted as successful in instances where all of their required checks have been passed. Short term loans lenders will never skip any of their checks in order to speed up the application process as a whole.