What terms do we see in online credits ?
Because if we talk about terms in the online loan signature, it is most likely that we think about the short term.
When talking about the short term, what we are talking about is terms that are normally less than one year.
We can go even further because in fact many of the fast online loans that we see in the market have much shorter terms.
This is so because of all the fast loans that we know in the market, microcredits are the best known of all.
And of all, these are the ones that in the end have the shortest term.
Normal in many cases it is not more than 30 days.
It can be even less if the customer decides to make the return on time.
One of the positive things about this financing is that clients can repay the credits in days.
That is why this financing is also called Day Pay Loans , because the repayment is done in a very short time.
The more days the client puts to return the money, the more cost the operation will have for him.
Online credits and characteristics of short-term loans
If we look we will see how most of these have very similar characteristics.
It has a lot to do with the fact that almost all of them are online loans .
We will see very few credits that are signed in the short term and that can be signed in another way.
For example, within guaranteed loans, we can only talk about those signed in the form of a commitment.
In the pawn of goods such as the pawn of vehicles or on other guarantees we can also see reduced terms.
Maybe not like in the mini-credits but if less than a year.
What's more, one of the recommendations that we always give from MaoriArt is that the lesser the better.
We recommend it that way because loans signed through pawn tend to have worse financing conditions.
In other words, they are useful in the sector but as long as the entire operation is considered in the short term.
If it is not done that way, it is better not to process the pawn since the interest rates are higher than the average.
Therefore, the higher financial cost is something that we will always see associated with short-term loans.
Above all and with more emphasis on personal loans without collateral .
Because, for example, in the signing of short-term mortgages the same does not happen.
In fact, in these mortgages the cost on the contrary is reduced as the term is less than usual.
There are financial advisers who even associate short-term loans with online loans.
Consequently, the characteristics of some will be those of the others.
From our point of view, the financial offer will always be associated with the signed credit.
What is certain is that in short-term loans, what is most predominant are online money credits.