A short term loan is a type of loan that provides immediate financial assistance for a short period, usually ranging from a few days to several months. These loans typically have fewer requirements compared to traditional mortgages, and are often intended for emergency situations where you need quick access to funds.
Short term loans can be applied for online, and are usually available in smaller amounts than traditional loans. They also typically do not require collateral or a high income to qualify. You can use short term loans for a variety of purposes, including paying unpaid bills, funding a vacation, or covering unexpected medical expenses.
Normally, short term loans require a one-time payment with interest. However, some lenders may offer the option to extend the loan duration for an additional fee.
In the Philippines, short term loans are provided by banks, lenders, and micro-finance agencies. Many loan providers use online portals for loan approval, which allows users to apply for loans anytime and from anywhere, eliminating the need for frequent travel and minimizing the loss of work days.