The major differences between long and short term loans

The human condition has become such that we don’t always have the money we need, or want, for the things we choose to buy. Banks have provided a solution to this with loans, but for individuals hoping to secure a loan, there is often a lot of confusion and uncertainty. Which loan is the best? Should you take out a long term loan and be indebted for years; or a short term loan for a smaller amount? There are many debates about the subject and everyone has a point of view when it comes to which loan is the ideal one to take. But for your personal needs, how should you decide? What are the major differences between long term and short term loans? Money and interest rates The biggest difference, other than the timelines, that exists between short and long term loans is the interest rates and the amount you are allowed to borrow. A short term loan will allow for smaller amounts to be borrowed for a shorter period of time, but usually at a higher interest rate than that of a long term loan facility. A long term loan will usually be taken for a larger amount of money – at a slightly lower interest rate, dependent on the lending institution, and the deal structure. Repayment terms Not every financial institution or lender will have precisely the same repayment terms. For some, an amount of R100 000 lent may need to be repaid over 60 months, while others may require the same amount to be repaid after 36 months. Others may present alternatives. What is important...

Securing Personal Online Loans Conveniently

Whether market conditions are financially distressed or buoyant most households, especially the lower to middle class income brackets, require extra cash at some point. No doubt the first reasonable and practical choice coming to mind are increasingly popular personal loans. These are usually unsecured loans, meaning without collateral, and are short-term cash advances for personal use based on the borrower’s income. However, when one talks about institutional or bank finance, even in the case of personal finance, which typically ranges from R 3,000 up to R 150,000, the perception is one of tedious paperwork and time-consuming processes. This is enough to intimidate even the elect from exploring this avenue! Is there an easier way however? We live in an information age where technological advancement makes services and products a click away. Ongoing development further entrenches the mentality of instant service. How about instant cash though, can this be considered at all? Well, yes, the financial services industry is no exception to this phenomenon; and fortunately so for those of you needing additional cash…quick. This is not to suggest that this is a “free for all” rather that the process has been smoothened innovatively. Online advancement including website development, the increased proportion of active consumers browsing, general market mechanics and economic trends have given rise to the most efficient loan application systems yet. A simple search will return instant results for accredited and NCR registered and regulated facilitators of loans, including personal loans. The online interface is supported by competent professionals assisting with the entire application process in the background. The features and benefits are indeed noteworthy; some are explored...

Securing Blacklisted Loans In SA

In an economic recession, particularly a global phenomenon, it is not easy to make ends meet for most families. Breadwinners find their hard-earned cash pulled to all sides, with more demands than their salaries can meet. Many have found themselves blacklisted with no hope of acquiring personal loans to meet particular needs. This could be settling a high-interest account early, purchasing household appliances or putting down a rental deposit to name a few instances. With blacklisted loans in South Africa now becoming a practical option, this is now a thing of the past. People who would otherwise not have qualified for credit, have an opportunity to be considered. This type of lending, particularly micro loans and personal loans, are gaining momentum. With the realisation of the above credit solutions the lives of many have been impacted positively with financial burdens being lifted. Many families who are otherwise not eligible to secure micro loans, payday loans or personal loans, are now able to secure them without being prejudiced by the stigma of a blacklist or two. Blacklisted loans in South Africa create a gateway allowing those in need of financial assistance the most to gain the financial help they desperately need. These loans make all the difference between paying a child’s fees, putting food on the table and meeting other important and often basic financial responsibilities. With the above credit which is also unsecured, life does not have to be an uphill battle for most families in South Africa anymore. Quick cash loans can be obtained for individuals with a good track record and satisfactory criteria, apart from the blemish...

Put Your Finances Back on Track with a Money Loan

It is extremely easy to find yourself drowning in unmanageable debt. It can happen easily through overspending using credit cards, partial or full loss of income, retrenchment or racking up many bills. Failure to pay your debts, for whatever reason, means that they will simply amass and probably grow to become unmanageable. Accumulating debt that’s beyond your affordability or cash flow is the fastest way to damage your credit rating. Money loans, especially short term loans can be the answer you need to get out of debt quickly! Short term loans can give you the necessary assistance to reduce your debt and maintain a clean credit record, if used appropriately. Money loans can ensure that you do not miss payments to creditors, especially existing payment arrangements, which will further harm your credit rating. If you are in a desperate financial situation, which requires proactive steps, you can apply for a short term loan that can also be redeemed over a short period of time. Money loans can help you pay instalments when you are between jobs. A short term loan can assist you in paying off and clearing major debts, while you focus on paying smaller ones. They are also a suitable form of bridging finance, for instance when purchasing a vehicle and awaiting your bank finance you may need to pay a refundable deposit immediately in order to secure the car. You can bridge the gap through a short term money loan, which will also aid you in the event of a compromised credit history. Many people pay their transfer costs when buying their homes with short term...

Small Personal Loans – Healthier Debt Option

The average person will normally do everything in his or her power to avoid a loan. However, with difficult times being the order of the day coupled with unforeseen situations it may be that personal loans become the ideal credit option. For instance, after the holiday season, many families are short on cash; and with a new school year around the corner, parents might find themselves overwhelmed by the immediate costs demanded by school-going children. Apart from school fees, stationery and books, new clothing must be acquired for the child who starts school for the first time or for those who step into high school. Small personal loans can give families the bridge they need at times as depicted above. Borrowed amounts with this debt format are normally small and approval relatively seamless. The amount of the monthly repayment is arranged with the lending institution, however, interest is unavoidable. It is highly recommended that one therefore engages with a reputed facilitator to assist in securing the best credit option available. It’s also wise for the borrower to make every effort to not default on repayments and if possible enquire about settling early, if extra funds are available at a later stage. No-one wants to be penalised for late payments, or worse, be blacklisted. Further, individuals or couples with permanent income from employment or established businesses can enjoy the convenience of debit orders, which is normally a standard requirement of lenders. Personal loans can be obtained from your bank, other financial institutions or companies especially established for this purpose. It is paramount to shop around for the best rates and...

Micro Finance Loan Criteria

What are micro-loans? We all need a little extra cash from time to time, whether it’s for groceries or sudden emergencies like a broken window. The major banks are particularly geared for large scale loans and mainly in the form of secured low-risk loans with significant collateral. This is sadly not an answer to emergencies or short-term situations. Micro finance loans are becoming a more realistic and available option for consumers needing short term, quick cash. Applications can be facilitated easily with very fast and even ‘over the counter’ or same day turnaround time. Furthermore, minimum requirements are less demanding than term loans. In short, they’re a simple, user-friendly solution to a problem that anyone can face at any point in life’s journey. What makes them better than ordinary loans? Micro finance loans are designed to be quick, with short repayment periods and simple, no-collateral agreements. Most banks or large scale lenders require surety, a spotless credit record, and a considerable paperwork before they’ll even consider you for a loan, even if the amount is not substantial. This highlights the significance of micro finance loans. Since these loans are unsecured, as mentioned, this implies you won’t need to put up your house or car to successfully secure the amount. They are based on smaller amounts, so repayments are more affordable. It is also possible that the convenience of more than one repayment option can be presented to the borrower. A poor credit record due to falling behind with a previous account, for instance, will not necessarily prejudice your loan application here, provided reasonable steps have been taken to address...

Loans in Durban Boost Your Budget

Do you need a financial boost? Convenient and affordable loans in Durban can provide that welcome financial relief. Daily news bulletins in South Africa have been heralding of late increasingly gloomy economic forecasts locally and across the globe. With the petrol price increasing, food costs rising, retrenchments and job losses, this has become a permanent blotch on the South African economy. Being short on cash and needing that extra liquidity is no longer confined to the post Christmas holiday season, or at the beginning of the year when school and university fees need to be paid. Rising inflation rates and other contributing factors such as unexpected expenses, including medical and hospital bills, can reduce the reach of your Rand at any time. A practical avenue to overcoming personal cash flow shortages can be found in disciplined use of personal loans in Durban from reputed credit providers and facilitators. Gone are the days when finding finance was a long uphill struggle available to a few. Technology and the rise of the internet have played its part and have smoothed the process of applying for a loan. It is not uncommon to find loans available instantly with online loan applications. What if I’m blacklisted? For consumers who have been blacklisted loans may still be accessible. The process of acquiring a loan may have slightly stricter criteria, but it’s not impossible as previously believed. You can play your part, in helping the process along, by being responsible and by providing detailed and accurate information of your financial status when applying. It is also important to take responsibility of your financial circumstances. Credit...

Lifesaver Money Loans for December

For many families December is a time of joy…and unfortunately a time of worry too! It is a time of joy for a number of reasons, firstly because of the school holidays and secondly because of Christmas and the promise that it holds. Parents may also be on vacation and “holiday time” means fun time – and “fun” costs money. It is a time of worry because of money obligations: how to buy Christmas gifts and how to treat kids over the holiday season? With a fast payday money loan or cash loan option from MBC Finance, these obligations can certainly ease off significantly. We at MBC Finance understand the need for fast cash and we can finance small loans from as little as R500 to as much as R2000; this might be just the kind of money you need to ‘tide’ you over during this festive period. With a new school year around the corner, children might need new clothing as they are still growing and for new sporting codes; there is also the need for certain types of stationary not to mention the ever present school fees. The MBC Finance money loan can give you a welcome start to the expenses that the New Year brings. Apply for the quick money loan in one of two ways: you can phone us or you can complete the application form online and a MBC Finance consultant will call you back. Within 24 hours the money will be in your bank account. Now, what can be easier than that? Just what you need for the additional Christmas expenses! Christmas is...

Emergency cash loans – making your life simpler

With the South African Rand reaching an all-time low in 2014, and with money being tight; many people are on survival mode. The majority of the population is living from pay check to pay check, with very little savings towards those unforeseen circumstances like a family member getting sick, emergency car repairs, and other emergencies that may occur. When the unthinkable happens, there is usually very little money to alleviate the situation. Many people are increasingly turning to cash loans as a solution for such problems. Cash loans, as the name suggests, comprise of a cash advance paid into your bank account or given to you as a cash lump-sum. Cash loans are an unsecured debt and each cash loan provider has their own terms, fees and application methods. There are a number of cash loans available ranging from traditional bank loans, quick loans online, fast cash advances and guarantor loans. There are also short term loans available from financial institutions other than banks. Cash loans offer great advantages, especially when you hit a financial hurdle or find yourself facing an emergency. With cash loans, you can borrow the specific amount of money you need with relative ease. Fast cash loans are even faster than most traditional bank loans in that the waiting period for approval is drastically reduced to a few minutes or a few hours at most. You do not need collateral in order to secure a cash loan. For fast cash loans, the application procedure is also straight-forward, eliminating loads of paperwork to be completed. The main disadvantage to consider when contemplating taking out a cash...

Consumer tips for managing instant loans

Attaining instant loans is easier than it has ever been before – but splurging out and getting unnecessary loans can be dangerous! Although instant loans can save you in times of financial difficulty or help you make a quick return on a short-term investment or opportunity, you still need to be precautionary. Unwisely borrowing too much and not being able to repay your instant loans – even if they are small amounts – will produce the same credit and legal consequences as defaulting on any large loan. So for this reason this article will provide a guideline on how to safely secure instant loans with no repercussions or regrets. Thoroughly Plan How Much You Need This may be the most vital part of the process as it helps you to avoid overexposing yourself to unnecessary debt. When you are borrowing money it’s prudent to stick to precisely what you need as this influences your repayment amount, possibly the term and even interest rate of your “quick cash” or instant loans. Read the Terms & Conditions Carefully Each instant loans establishment may offer slightly different terms & conditions, but these small differences can affect the instant loans process, the timeframe of repayment and the final debt in a substantial way. If you are unsure of any of the terms & conditions on offer then find another establishment, or ask a more knowledgeable person to help. You can circumvent this by dealing with a reputable service provider with a good track record. Plan Precisely How You Intend to Repay Don’t ever acquire instant loans without knowing exactly how you intend to...