Currently, loan options are becoming increasingly diverse. So, is it advisable to take out a short-term loan now? What are the forms of such loans? Let’s explore with Topgovn!
Nowadays, consumer demand for loans is on the rise. To meet this demand, lenders are offering a variety of loan options to suit borrowers’ needs.
Common loan types today include: unsecured loans that don’t require collateral, installment loans, overdrafts, etc. Particularly, short-term loans are gaining popularity.
Short-term loans are suitable for those needing funds for a brief period (less than 12 months), for personal expenses like living costs, shopping, etc.
Below is detailed information to help you better understand short-term loans and make an informed decision.
What is a Short-Term Loan?
Short-term loans are loans with a short repayment period, usually under 12 months. These loans are used to cover shortfalls in production activities and customer operations or to handle urgent personal financial needs.
Short-term loans are not suitable for customers who need long-term investment capital or those looking to finance home purchases, car purchases, house building, repairs, etc. These activities require significant capital and are not meant for long-term investments.
Advantages and Disadvantages of Short-Term Loans
Short-term loans offer many notable benefits, but there are also some drawbacks to consider.
Advantages:
- The repayment period for short-term loans is under 12 months, making them less risky in terms of repayment and maturity conversion.
- Short-term loans generally have lower interest rates than long-term loans.
- There are many different short-term loan options available, allowing you to choose the one that suits you best.
Disadvantages:
- If you need long-term investment but lack the capital or need a large cash loan to be repaid over several years, or if you need to buy business equipment, then a different type of loan might be better suited. This way, you won’t face the pressure of repaying a large amount in a short period.
Popular Short-Term Loan Types Today
To meet different customer needs, lenders and financial institutions offer a variety of convenient short-term loan options.
Below are details about various loan types, giving you an overview to help you choose the right one.
Credit Line Loans
With this type of loan, the registration process is very simple. You only need to complete the paperwork once but can borrow multiple times. Banks do not set limits for each loan unless the loan amount exceeds the credit limit.
Loans and repayments can be rotated within the loan contract period, making this a flexible funding option. You can invest significantly and allow the bank to control the purpose of your business loans.
Individual Loans
In this form, the bank will determine the purpose and need for funds to approve the loan.
With this loan type, you can make installment payments, helping banks easily track loans and calculate repayments and interest.
However, this method requires unnecessary procedures as you must complete short-term loan paperwork for each loan.
Standby Credit Line Loans
With a standby credit line, you can choose a short-term loan package. Financial institutions are ready to meet customers’ capital needs in VND or foreign currency.
However, if customers do not use or do not fully use the credit limit within the term, they must still pay the commitment fee.
Reliable Apps and Banks for Short-Term Loans
Currently, many units provide short-term loans. However, you should carefully research before deciding to borrow.
Below are some suggestions for safe and quality short-term loan providers.
Short-Term Loans via Viettel Money
Through the Viettel Money app, you can take out short-term loans from reputable lenders like MCredit, with contracts up to 12 months.
The loan application process is simple and can be completed on the Viettel Money app. With just a few taps, you can easily borrow money online without cumbersome paperwork.
Moreover, borrowing money through Viettel Money allows you to conveniently and quickly make monthly interest payments, making it ideal for short-term loans.
Short-Term Loans via VIB Bank
VIB Bank is a popular choice for short-term loans. To best meet customers’ short-term capital needs, VIB offers packages totaling 1 trillion VND with preferential interest rates starting at 8.49% per year.
Short-Term Loans via Vietinbank
Understanding cash flow and business plans, VietinBank quickly meets your working capital needs.
Currently, Vietinbank offers popular loan types like working capital loans and overdrafts. These loans have a maximum term of 12 months. The loan amount depends on customer needs, repayment sources, capital, and collateral.
Short-Term Loans via Vietcombank
At Vietcombank, when you need to withdraw capital, your company must file a loan application. The total disbursed amount will be less than or equal to the amount committed in the contract. The loan term is flexible from 1 month to 12 months, depending on customer needs.
We hope this article helps you choose the right short-term loan package for your needs. Don’t forget to use Viettel Money for convenient, quick, and safe online loans. Additionally, there are many exclusive benefits and promotions waiting for you. Use Viettel Money now!
