Why is short term loan better than long term loans?
First you will not be in debt for a longer period of time. Once you have cleared the loan the money that was being paid for short term installment can be used for investing or saving…
Secondly when you are taking a short term loan you are focused of paying it back at the earliest, so you can be peaceful.
With loan term loans, it is the tendency of every human that it is taken a bit lightly. Since loan term loans are offered at a less interest rate and less monthly installment.
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There are many financial companies who prefer only to give short term loan as they will able to get their money within a short span of time. With the cash flow coming in early, they would be able to lend to more customers and this not only helps their company to grow faster but their companies can become reputed and also increase their company brand value.
People prefer to take short term loans nz, instant cash loans nz for emergency purpose. People take long term loans say for example their children education or buying a new house. Short term loans are easy to avail and quick as most financial companies ask a minimum details and documentation. Nowadays short term loans can be availed online without people having to physically go to financial companies. Since long term loans are usually large amounts, people have to physically go to financial companies or call the representatives to their place, have discussion, produce many documents etc. which would take a longer duration to avail the loan.