How long are Short Term Loans?
Short term loans are a type of emergency loan used to cover a short term financial need. Because of the relative high cost of borrowing for a short amount of time, loans are normally capped at 12 months.
The best deals for payday loans are 3 months. So how long are short term loans? Between 3 and 12 months.
Can I get a short term loan for more than a year?
On loanpig.co.uk, we only deal with short term loans of 3 to 12 months. This is because the cost to borrow for a short time is not suitable for a long term loan.
We specialise in finding you the right length loan for your circumstances but we definitely recommend between 3 and 6 month loans.
Why borrow for under 12 months?
Because short term borrowing loans use fixed rate interest and usually somewhere between 99 and 292% APR, we don’t recommend borrowing for more than 12 months.
That’s why ourselves and our panel of direct lenders only offer up to 12 months. Just because you can get a longer loan elsewhere doesn’t mean it’s the right thing for you.
As a responsible lender, we do our best to find the right deal for you.
Should I borrow for longer?
Don’t borrow for too long if you can afford to pay the loan back.
The quicker you repay the loan, the less interest you’ll pay.
While there is an over all cap of twice the amount you borrow, it’s nice to be rid of the debt as quickly as possible.
Many of our lenders allow early repayment without a fee. Pay off your loan early to save a chunk of interest.
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