For a variety of reasons, it can happen that you need a short-term loan. We present five different ways of borrowing money in the short term and show you what you need to consider. How you can borrow money instantly.
A recent study by the UK credit investigation agency showed that Britains have their finances under control. Nevertheless, private consumers are repeatedly confronted with situations in which short-term liquid funds are required. A due bill can no longer be postponed or the threat of a bank account seizure can only be avoided by making a quick down payment. Bargains are much more often the reason for a sudden need for money, as they are only available for a short time and the consumer does not want to miss them at all. If there is a lack of the necessary change in the bank account, he can borrow money at short notice.
Five ways to get a loan in the short term
In the following we present the best ways to obtain a loan in the short term:
1. Borrow money quickly with a mini loan
In the age of the Internet, new forms of credit have established themselves. One of them is the mini loan, which is considered the fastest online loan. Other terms used are short-term credit or short credit. Among the best known mini credit providers are Satsuma and Ferratum. A mini credit is about credit amounts from 100 to 3,000 GBP (max. 5,000 GBP) with typical terms of 30 days. Alternatively, repayment is possible after 7 and up to a maximum of 180 days. The interest rates range between 8 and 15 percent. With a mini loan, consumers can borrow money at short notice, because they receive their loan amount on the day of application or within 24 hours.
Providers such as Ferratum offer a chargeable express payout, where borrowers will find the money in their account after 30 minutes. The payout is free of charge on the day after the application is made. With caspher, consumers benefit from low interest rates, and the immediate payout within 24 hours costs a fee
Note: With a mini-credit you can bridge unplanned bills in the short term. Payment within 24 hours is possible. Disadvantages are the higher interest rates and high fees for express payment compared to an instalment credit.
2. Apply for overdraft facilities for the current account
Customers of a bank or savings bank who have regular cash receipts can use an overdraft facility. The financial institution grants the credit either on its own initiative or following an application by the respective customer. An overdraft facility will usually be several times the amount of the monthly account inflow. Two to three salary receipts are usual. The credit line can be increased at short notice after consultation with the bank consultant. The interest rates for an overdraft facility are high and can be up to 15 percent. By comparison, an installment loan costs interest from 4 to 8 percent. An overdraft facility is not suitable for longer periods of use.
Note: An overdraft facility can be used to secure an account overdraft. The overdraft should be settled with the next salary, as overdraft interest is expensive.
3. Immediate loans with rapid disbursement
Immediate loans are the solution for short-term liquidity needs. Favourable interest rates allow you to take out a loan because a bargain is beyond the current available budget. Credit institutions promise: Fast money makes wishes come true now. This does not always correspond to reality. Many a provider uses the term instant credit as a pure advertising instrument, because in reality a promised immediate payment takes up to 10 days.
Especially with large credit sums the creditworthiness and its exact examination plays an important role. The applicant’s details and identity must be verified. For smaller credit amounts up to a maximum of 3,000 euros as with a mini loan, the creditworthiness requirements are not as high. Mini-credit providers enable instant loans with fast payout by using online verification and credit checks
Note: A mini loan is eligible for a real instant loan, as the money is approved and paid out within one day. Maturities of up to 180 days and a maximum loan amount of 3,000 GBP set limits.
4. Pawn credit at the pawnbroker
A pawn credit offers an opportunity to borrow money at short notice away from the banks! No applications or credit checks are required. At the pawnbroker valuable objects are accepted. In return, the pawnbroker is offered a temporary amount. Valuable items such as jewellery and gold or a car can serve as collateral. Low-value consumer goods are not accepted. The pawnbroker gives a pawn credit below the actual value of the pawned item. The pawnbroker has the possibility to pay back the loan amount plus fees after three months and to redeem the pawn.
Note: For a pawn credit a valuable object is required. The money loan is subject to a fee. If the pawn is not redeemed in time, it will be auctioned by the pawn shop.
5. Credit from private
For short-term financing needs, private investors from the Internet offer a solution. On well-known online credit marketplaces such as auxmoney and smava, private investors finance the projects of private prospective creditors. The project and its presentation determine whether or not financiers can be found for a project. The financing process is usually not completed within a few hours. The conditions are agreed between the respective partners. If repayment is not made on time, SCHUFA is informed and a debt collection agency is called in to collect the debt.
Note: With smava and auxmoney, private individuals can obtain money outside the banks. Favourable interest rates are only available if the creditworthiness of the prospective creditors is adequate.
Conclusion: Various possibilities for short-term borrowing
If you want to borrow money in the short term, you have several options. An overdraft facility can be set up quickly. A valuable object can be turned into money in a pawnshop. A loan from private individuals can be obtained away from banks via credit marketplaces, although immediate availability is rather unlikely.
A mini loan offers the advantage that the money can be paid out the same day without bureaucratic effort. The interest rates are comparable to those of overdraft facilities. The short term ensures manageable and adjustable costs.