Loans can be divided into three main categories. Few people know that banks are dealing with short-term, medium-term and long-term loans. What is a short-term loan? The name itself may indicate the conditions with which it is incurred.
We can obtain such a cash loan for a period of up to 1 year and it is usually granted in a small amount. The above-mentioned short-term loan is nothing other than payday loans we all associate, or loans for any purpose, e.g. for buying a car, for renovation, or a loan for a dream holiday trip.
This type of offer is not without reason chosen more often by Poles, and really favorable conditions of the loan agreement play an important role here. Thanks to this, we can quickly obtain the funds we need, which we often need almost immediately.
Short-term loan – for how long can it be taken?
We already know how long the short-term loan lasts maximum. We can enlist him for no more than a year. However, such a long time is not necessary at all, because looking through the banks’ offers in 2019, we can see that the services are really diverse.
For example, we have a loan with a minimum monthly, 3-month or 6-month period, depending on the bank selected. Therefore, it is not imposed that a short-term loan must be repaid throughout the year.
In a situation where we need, for example, urgent cash to buy equipment, and we know that in a month we will receive a salary, from which the funds will easily cover the loan, we can use the loan service for 1 month.
What are the rules for granting short-term loans?
Short-term loans granted by banks are very different from payday loans which we take out in loan companies. However, in both cases, in order to be able to submit an application, we must meet several basic conditions, which are:
- Polish citizenship;
- Living in the country;
- Valid ID card.
Taking into account the short-term loans granted in banks, it will also be necessary to meet several issues that are always checked by these institutions. First of all, we must have creditworthiness, which, fortunately, for loans with short repayment periods is not so difficult to obtain.
These types of loans typically take between 1,000 and 3,000 dollars, which is why most people who take up employment or get various types of benefits will be able to pay off such an obligation. Another issue is for banks to check the most important databases, which is necessary to determine our credibility.
The Credit Checker database plays a key role here, whereas you know – our credit history is recorded. Check how to build a positive story in a Credit Checker. If we took out loans or credits before, the bank will have access to all information about them, i.e. timely or late repayments and debts.
How do you increase your chances of getting a cash loan?
The KRD register is also important here, in which all indebted persons are listed. In this situation, unfortunately, we will not have a chance to receive a short-term loan even in the minimum amount. To increase the chances of getting a loan from a bank, we must first ensure that we do not have debt.
However, for people who are a debtor or have a bad history at Credit Checker, the aforementioned non-bank companies that offer payday loans or loans come to the rescue. Such financial liabilities also take the form of short-term loans, however, they are granted by non-bank institutions.
These companies are based on different principles than banks, which is why getting such financial assistance is much easier. First of all, the above-mentioned bases are not taken into account, thanks to which even persons with a bailiff and clients with a bad history in Credit Checker have a chance for a short-term loan.