Loan Basics: Understanding 12-Month Loans

Popularly known as payday loans, 12-month loans are one of the best products on the financial circuit today. They are not guaranteed for a 12-month period and can be easily applied for without a lengthy loan sanction process. The financial crisis can knock on your door at any time and asking others for help is not always the best option. That is why these short-term advances of a small amount can be so advantageous to the borrower.

What is a 12-month loan and how does it work?

12-month loans are basically a short-term personal loan that is borrowed from a lender or bank and must be repaid within a 12-month period only. These do not require any separate account, therefore obtaining them is so easy and hassle-free that the monthly fees are deducted from the regular salary account only. One of the things that bother borrowers sometimes is high interest rates, which ultimately make them more expensive. However, most people take them only when they find themselves in a sudden financial trap and therefore don’t think much about higher interest rates.

One can apply for these loans online by filling out the forms and as these loans do not require a guarantor or credit score, the loans are sanctioned quite quickly. One can pay the dues through his salary account using the automatic payment mode or the manual mode.

Anyone can take these loans as there is no collateral requirement so these loans can be taken for any urgent medical or educational purpose.

Characteristics of 12-month loans

There are certain salient features of these loans that distinguish them from the others:

• Easy Application: One can easily apply for these loans online without much trouble. The eligibility criteria for these loans are easy and therefore anyone can apply for them without restrictions.

• Duration of 12 months: One can take these loans only for a duration of 12 months, which means that you will have to pay within a year, regardless of the amount borrowed.

• No Guarantor or Credit Score Required – Unlike other loans, these payday loans do not require good credit or a guarantor of any kind because, here, the most important thing is financial urgency and not financial history.

• Expensive Interest Rates: Because these loans are easily given away and also for a period of only 12 months without many compulsions being imposed on the borrower, it is inevitable that these loans will be more expensive compared to other types of loans.

12-month loan benefits

Some of the advantages that can be enjoyed are:

• A loan can be obtained for any amount depending on the emergency and the requirements.

• Anyone can apply for this type of loan and can take care of educational or medical expenses.

• These loans are approved within 24 hours and will be credited directly to the bank account.

• You can take advantage of many discount offers on these loans, which most banks and lenders devise as a marketing strategy. However, these discounts can be very beneficial to the customer.

• They are very flexible in terms of repayment, as the loan can be repaid as desired in one year.

• One can take these loans and pay them off in a timely manner to increase his credit score.

• 12-month loans are flexible and one can easily take advantage of them without much documentation and credit rating hassles.

• These 12-month loans can be obtained without the need for any collateral or collateral or a good credit score and the loan amount will be credited within 24 hours directly to your bank account, offering you easy loans.