It is no longer a secret or stigma that many people rely on loans to manage their lives. In fact, with the current economic situation in Nigeria, many people seek relief by acquiring emergency loans to support their livelihoods. So, what is a loan?
A loan is a sum of money individuals or companies borrow from banks and other financial institutions (conventional or digital) to manage planned or unplanned events. In doing so, the borrower incurs a debt, which must be repaid with interest within a specified period.
There are different kinds of loans available for both individuals and corporate bodies. The main purpose of taking out a loan is to increase one’s overall money supply.
SHORT LOAN
A short loan is a type of loan that one processes to support a temporary personal or business need. It requires repaying the principal amount with interest by a given due date, which is usually short. A short loan typically ranges from N10,000 to N50,000.
However, not many digital loan organizations offer a longer tenure for short-term loans like KwikPay Credit. While other lenders offer tenures of 7 to 15 days for small loans, Kwikpay Credit provides a 62-day repayment option for short loans, based on customer feedback.
BENEFITS OF A LONGER TENURE FOR A SHORT-TERM LOAN
A longer tenure is often considered better for a short loan because it allows for:
More Flexibility: A longer tenure option provides the borrower with flexibility regarding repayment. They won’t need to worry about an early repayment deadline. However, this doesn’t mean one must wait until the last day to repay. Payments can be made gradually or even early to improve the credit score.
Cash Allocation for Other Things: A longer tenure allows you to undertake other projects within the timeframe, freeing up cash for other important needs and alleviating the burden of early repayment.
Bit by Bit Payment: Gradual payments offer convenience and reduce the stress of repaying the entire amount at once.
Increased Affordability: Lower payments make it easier to manage finances and avoid default.
Reduced Financial Strain: A longer tenure helps distribute the loan’s impact over time, minimizing financial stress.
Lower Risk of Default: Extending the tenure reduces the likelihood of missing payments or defaulting on the loan.
Improved Credit Score: Consistently making payments on a longer-term short loan helps build a positive credit history.
These are some of the benefits of longer tenures for short-term loans, especially for amounts ranging from N5,000 to N50,000.
Meanwhile, Trafalgar Associates Limited, the owners of KwikPay Credit and one of the loan companies recognized by the Federal Government of Nigeria as listed by the FCCPC, has made longer tenures available for their nano loans through Kwikpay Credit. While others offer tenures of 7 to 15 days, Kwikpay Credit provides a 62-day repayment option for short loans, which is remarkable!
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