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3 Types of Short-Term Loans



From time to time, people can find themselves in a financial situation they are unprepared for. An emergency may have come up that requires immediate funds, but nothing is available at the moment. In that case, a short-term loan may be the right solution.

1. Installment Loans
There are both secured and unsecured installment loans that can be applied for by a borrower. The category is broad and covers loans that are obtained by both individuals and businesses. They are repaid through regularly scheduled payments, often monthly. The interest rate and duration of the repayment period depend on the borrower’s credit and the amount of money issued. Look into short term loans Mississippi to figure out if an installment loan is a good option for the situation.

2. Payday Loans
A payday loan is paid to the borrower in one lump sum and is expected to be repaid quickly. They can be used to get a quick inflow of cash to pay for unexpected events or prevent things like bank account overdrafts. This type of cash advance is unsecured and usually has a high interest rate.


3. Title Loans
If the borrower needs a secured loan and they have a vehicle with a clear title, they may choose to get a title loan. The lender will put a lien on the vehicle as collateral until the loan has been fully repaid. The repayment period depends on the amount loaned and the credit score of the borrower.
Some types of short-term loans need to be paid back quickly, such as payday loans. Others can be paid back over the course of a year. The terms will vary depending on the lending institution and the type of loan. Check with a professional before signing any paperwork to ensure the right type of loan is being obtained.





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