Did you know that wealthy individuals often borrow to further enrich themselves? Aliko Dangote, the richest man in Nigeria and Africa, continues to borrow to grow his business. On the other hand, most of us turn to banks, financial institutions, and licensed digital lenders for less-productive expenses such as bills, rent, or weddings.
However, successful entrepreneurs like Femi Otedola and Tony Elumelu strategically borrow money with interest to fuel their thriving business empires and generate more wealth.
Over the past decade, digital lenders like Trafalgar Associates Ltd (KwikPay Credit) have given quick loans to individuals to develop their side businesses and hustle while in employment, and the digital loan app has supported various MSME businesses in the country.
Here are the 10 major benefits of Short term loans:
Taking a quick loan can be very useful, and it comes with several benefits.
1. Quick and effective loan
Most times, quick loans take less time to process. The online application may take a few minutes to complete, with lending decisions received within an hour. Therefore, if you need emergency access to funds for your personal or business needs, a short-term loan might be the answer.
2. Reduced stress
Owing money for a long time and watching the interest accrue on such a facility, can have a psychological effect. It is less stressful and less traumatic to repay a quick loan, than a debt for a long period, due to the accumulated interest. Repayment in a short period is less worrisome.
3. Cash available in an emergency
Cash is available when it is needed in an emergency, especially when an unforeseen incident happens like a bereavement, hospital bill, or sudden home expenses, Short-term loans may be available subject to meeting all the requirements to access the loan.
4. Offers flexibility
You can choose how much you wish to borrow and the tenure, whether you need funds for a month or six months, provided you earn enough to repay the loan, when due. There is also flexibility in the repayment, as most digital lenders automatically collect repayment when due, from your bank account. This is simple and efficient.
5. No Collateral Required
Most short-term loans do not require any of your property or assets as collateral. However, for short-term facilities with higher amounts, the lender might ask for some form of security for the loan.
6. Wide Range of choices
Borrowers have numerous options to apply for quick loans, whether from banks or licensed digital lenders. Applying for loans online has become a common practice, and consumers are increasingly confident in digital lenders, who often offer fast and more flexible terms.
7. Early Repayments Benefits
One of the major benefits of a quick loan is the early repayment. You may be able to save money on the applicable interest if the loan is repaid early, before the due date. Please ensure that you check with your lender about early repayment. Not all lenders allow reductions in interest due to early repayments.
8. Reduced Interest
There is lesser time for interest to accrue on a quick loan Even though the interest rate charged by lenders for a short-term loan is usually higher than a long-term loan, borrowers can save money in the long run, in comparison. You will incur less interest as compared to longer loan durations.
9. Boost Credit Score
A short-term loan with a solid repayment history can significantly enhance your credit score in a short period. This improvement in your creditworthiness opens up greater opportunities to secure larger loan amounts in future applications.
10. Business and Side Hustle Support
Borrowers can use quick loans to power their businesses and meet working capital requirements. Individuals in full-time employment normally use short-term loans to sustain and develop their side business or hustle, to the next level.
In conclusion, using a licensed lender like KwikPay to apply for your quick loan means minimal documentation, a paperless process, and fast disbursement of funds if the requirements are met. You must have a steady source of income to repay the loan. This is an excellent way to raise money, especially in a financial emergency.
As a trusted lender with over a decade of operation in Nigeria, Trafalgar Associates Ltd (KwikPay Credit) can meet your short-term needs. Just apply, and we will do the rest.