In UK, short-term loans are becoming more popular lately. To get this type of loan is easy,

because of the minimum requirements for the borrower. But as in all types of loans, this also has

its own nuances, which you should get acquainted with before signing the contract.

This term means short-term loans or guaranteed loans, issued for a period of not more than a

year. It is because of the small loan terms that these loans are considered to be the least risky.

The monthly repayment of the loan does not exceed a third of the borrower's salary. In the event

that the payment is overdue, the bank has the right to impose a fine for each delayed day. On

short-term loans of banks are charged quite high interest. The rates for such a loan depend on

several factors. The most important are the material condition of the borrower and his credit

history. If the recipient of the loan has long been a client of the bank, then the volume and

turnover of funds on its accounts are checked. On average, the rate in rubles is about 15-25{2b5eab33e95ca89daf808308c2a8b3d414552fbc41b971d8fa1f29ddca2cbc7e} per

annum, in the US currency it drops to 13-16{2b5eab33e95ca89daf808308c2a8b3d414552fbc41b971d8fa1f29ddca2cbc7e} per annum.

You should start with the application. It is made in free form, which must necessarily contain

information on the terms of the loan, the desired loan amount, its purpose and the main sources

of debt repayment. The list of documents for all banks is different, it can be found directly in the

credit institution. It is necessary to have a passport, sometimes they require a certificate from a

permanent place of work. For this type of loan, a guarantor is also needed, although in some

exceptional cases it is possible to do without it.

Securities may be pledged by the recipient of the loan. Employees of the financial institution

should be convinced of their authenticity and high cost on the exchange. After the audit, a

contract is drawn up, which indicates the fact of taking the securities of the borrower on bail.

After that valuable property is transferred for storage to the bank and is returned to the borrower

only after covering the debt obligations. In case of delay in a monthly payment, a credit

institution can sell securities at its discretion. In the presence of such a pledge, a surety is, of

course, not required.

Credit officers of the financial institution regularly monitor the accounts for the timely and

complete repayment of the loan. If within three months the borrower's credit account does not

receive payments, the bank is entitled to recover the full amount of the loan from the debtor

ahead of schedule, including interest accrued on it. In the absence of any payments from the

borrower, the creditor may, in a judicial proceeding, file a penalty on the property.

Such borrowers include cooperatives, private enterprises, small enterprises, etc. For legal entities

such a type of loan can be issued for a period of not more than ten months. For each delayed

payment a fine is charged in the amount of twice the monthly rate. To take the loan, the

following documents are provided: the balance of the enterprise, letters of guarantee, property

pledge agreement, documents that can confirm the intended purpose of borrowed funds. In

addition, there should be signatures of the head and the accountant with the stamp of the

enterprise and the constituent documents. For the above-mentioned borrowers, this type of

lending has a strictly targeted focus.

The most pleasant thing is the simplicity of its design. The issuance of short-term loans takes

much less time than for long-term loans. The whole thing is in the process of registration, which

can take several days for long-term loans, as it is necessary to familiarize in detail with the

borrower, his financial position and the liquidity level of his funds. It is necessary to specify all

possible situations that can happen over many years of repayment of borrowed funds.