All kinds of short term loans are available to borrowers in London, UK. Nowadays, it is no longer necessary to go to a bank branch to take out a loan as consumers who have internet can easily apply online. Some of the different types of loans available in the UK include installment loans, peer to peer loans and payday loans.
Installment loans are a type of loan that requires you to make a monthly repayment until the end of the loan term. Most short term installment loans have a loan term in between 1 – 7 years. The lender usually don’t care how you use the funds. Before applying, make sure you read the fine prints and become familiar with the terms so that you won’t be surprised of getting any charges that youa re unaware of. Many lenders don’t charge early repayment fee so you can pay back the loan as soon as you have the money. Installment loans can be easily approved even for those who have bad credit.
Peer to peer loan is a contemporary way of offering loans for people in need of money. With peer to peer loan, you are not borrowing from bank but from individuals. It is up to the individual lenders to decide the requirements of the loans. First, you must post the amount you want to borrow ad wait for 1 – 3 weeks for the loans to get funded. The funding will increase as more lenders place their bids. P2P loans typically allows you to borrow an amount in between £1,000 – £35,000.
Having good credit score is not necessary as the lender can consider other factors if your credit score is low. The funds will be released in a few days after it is successfully funded. Whenever you have the money, you can pay back without getting charged with a penalty fee. Since the loans are funded by real people, you will be able to get to know them unlike when you borrow a loan from a bank. The interest rate in p2p loan is usually fixed and you can pay back the loan within 3 – 5 years.
Payday loans is a type of loan that requires you to pay back on your next pay day which is the day when you receive your pay check. Payday loan is a small loan for covering expenses up to £1,500. payday loan can be approved in a few minutes and the funds released to you as fast as the next business day. Many people who are in urgent need of cash choose payday loans because it does not require faxing over financial document or have a good credit score. The downside of payday loan is the high interest rate and the short repayment period which usually lasts from 14 days – 28 days.