A loan can help you when you need extra financial support. Perhaps you had an unforeseen expense, or maybe you want to grow your business and need extra capital to do so. Either way, you should find a loan that is right for your circumstances.
A short-term loan can help you when you’re in a pinch. If you need to cover unexpected bills, such as an unplanned visit to your doctor or emergency car repairs, a short-term loan might be the right option for you.
Traditionally, long-term loans are taken out for larger financial responsibilities. As the name may suggest, they are paid off over a longer period, whereas a short-term loan is repaid quickly – within a few weeks or months.
Here’s a closer look at the benefits of each type of loan.
1. You don’t need collateral
It doesn’t have to be tied to an asset, such as a house or car.
2. There's no long-term commitment
Lenders aim to have it settled quickly – usually within three months.
3. You immediately gain access to cash
Funds will usually enter your account within 24 to 48 hours.
1. Access to larger amounts of money
You can usually borrow more with a long-term loan than a short-term loan.
2. Lower interest rates
Since the loan amount is spread out, the rates are usually lower than for short-term loans.
3. Longer repayment period
You have more time to pay the loan back and this may be easier to manage.
On, we offer both short-term and long-term loans from leading partners around South Africa. We’ll match you with offers you’re most likely to be approved for, based on your credit report and account information.