When applying for a short term loan there are a number of different stages which will need to be completed before a lending decision can be made. These stages are designed to ensure that the loan requested is suitable and affordable and in doing so avoid granting loans which are not financially suitable. Short term loans like all other forms of borrowing are accessible via the means of a legally binding loan agreement and therefore should not be entered into lightly. As we would with a new credit card, bank loan or Hire Purchase agreement, when it comes to short term loans we should be sensibly considering the options which are available and then making an informed decision. Providing it is decided, through research, that short term loans are the most suitable choice, the application process is actually very simple and straight forward and details of which we will discuss in greater detail here today. Firstly, let’s look at a brief summary of the type of loans which are available from short term loans lenders. Short term loans, as the name suggests, give the facility to access a small sum of money as a loan, usually in the region of £300.00. The terms of repayment are considered flexible, given the fact that many lenders offer instalment based borrowing. This means repayments can be spread over a number of months, the term of which is selected at the point of applying. Depending on the loan value and the lender terms typically range from a single payment (also known as a payday loan) and extend right through to as many as 6 months in most cases. This means whether an individual wants to borrow £250.00 over 3 months or £300.00 over 6 months, there is likely to be a lending option to meet the need.
To apply for a short term loan, the application will almost always be via an online application form. This means the process can be completed with any internet enabled device, whether that be a tablet, mobile or laptop. These application forms have been developed over time so usually their clear and simple nature means they can be filled out and submitted in as little as 5 minutes. It is absolutely vital that the information supplied is accurate and up to date, as supplying incorrect or out-dated information will almost certainly result in the application being declined. Once the application is fully completed and submitted the lender will immediately run the application through what is known as a ‘decision engine’. The decision engine is a combination of all the electronic checks required to be completed by the lender and will decide if the application can be progressed any further. Providing this stage is passed it is likely then that most lenders will then undertake a manual review of the application, to ensure nothing has been ‘missed’ and furthermore if any additional checks need to be completed. It is only once all these checks have been passed as required that the lender will be able to grant the short term loans resource requested.
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