Short term online personal loans are now available


A personal loan is a short-term loan that you can pay back in multiple installments. It’s a great alternative to traditional short-term loans, offering quick cash at ridiculously high interest rates. A personal loan gives you the right to prepay the loan to free up income in your spending plan and potentially save on interest.

Most short-term loans require proof of employment, payslip, bank account, and a valid driver’s license. Because there is often no collateral and lower credit requirements, these loans charge higher interest rates (up to 400 percent) and possibly other fees and penalties.

Let’s dig deeper and examine what short term personal loans are available and if there is a good option for you.


A short-term personal loan is a type of loan with little to no collateral and has a term of less than one year. Supporting documents may be required (e.g. proof of employment or your credit card history), but in most cases you will submit an application and receive your money within 24 hours.

The short-term loans are offered for a maximum of $2,000 with repayment due in weeks. After the company reviews your application, they send the contract with the approved amount and interest rates. So before you agree, you still have the opportunity to calculate how much you have to pay back.


There are a few main types of short-term personal loans; They have different characteristics, conditions and fee structures:

  • payday loan – The loan provides borrowers with cash until they get their next paycheck. Let’s say you want a $100 loan today – payday can do it! The only requirement is proof of employment with a payslip. These loans need to be repaid quickly and painlessly – otherwise you will be hit with high APRs and fees;
  • overdrafts – a form of short-term loan where customers can get a temporary defrayal from their bank if the account does not have the required charges. In terms of repayment, these loans are similar to installment loans: a borrower has regular, frequent payments over a period of time until the principal and interest are repaid;
  • car title loan – a form of short-term lending that allows a borrower to use the vehicle as collateral. This is more of an exclusion from the definition of short-term personal loans (which typically have no collateral), but it’s a perfect example when it comes to the high interest rate. If you default on payments, interest costs go up and the loan will cost you a lot more;
  • bridging loans – are useful in real estate transactions. For example if you bought a new house while the other property remains on the market. You need impeccable credit for this type of loan; Lenders also favor borrowers with a low debt-to-income (DTI) ratio.

Another popular short-term loan option is to extend your line of credit with a credit union or bank. It can improve your financial situation at once without any side effects. Consequently, a higher line of credit makes you more attractive to lenders.


If you decide to take out a short-term loan, consider the lenders that do not charge penalties. In another scenario, you will be asked to pay additional fees if you want to close the deal ahead of the agreed schedule. Isn’t it deeply unfair that paying off the loan earlier could cost you more?

Here is the list of several companies that will not charge you for such a “service”:

  • lucky money – a loan provider with an innovative lending approach. It offers personal loans, ideal for consumers looking to save money. Happy Money consolidates high interest rates and gives borrowers exclusive access to more effectively manage their finances. Note that while there are no prepayment penalties, a processing fee of up to 5% may apply.
  • Luminous flux – the lender that offers some of the lowest interest rates on personal loans. Same day financing is available and there are no prepayment penalties or other fees. Considering that shorter loan terms come with lower interest rates, this makes LightStream a formidable option. And your best financial interest.
  • SoFi – a lender who can give you a loan if your score is at least 680. SoFi clients also get free access to financial advisors, career coaches and other events dedicated to improving their financial literacy. This lender offers a seamless application experience so you don’t have to pay any late payment or prepayment fees.
  • upstart – a lender that deserves attention because of competitive interest rates and fast financing options. Note that Upstart assesses your creditworthiness and examines your work history to determine if you are eligible for credit. In case you have a loan from this company and decide to repay it earlier, you will not be charged any additional fees. However, you will be asked to pay a handling fee of up to 8% and late payment costs.

According to statistics, more than 20 million Americans have unsecured loans. So before you get approval for financing, check the company’s repayment policy. Look for additional fees and interest rates that may apply; Ask a financial advisor about early repayment.

The final result

To wrap up this story, we would like to ask you to re-evaluate the purpose you have for a personal loan. Remember, you can always ask your friend or family for some cash; Buy now, pay later; or just sign up for a credit card.

While short-term loans may seem like a great opportunity to meet your needs, their fees and interest rates sometimes exceed 400%. Missing payments will negatively impact your credit score and cost you more in late fees, penalties and interest.

Look for online lenders that offer cash with no additional fees; Check the refund policy and if there is anything extra to pay if you want to close a deal earlier. Make sure you do your research and don’t face any negative consequences when dealing with online lenders.


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