Small Loans for Students
Small loans for students is a saviour for students who are in urgent need of some extra cash. Small loans are basically short-term low-value loans, which help to fix financial situations. This loan was designed to help people who were in a financial emergency. The emergency could have been anything, phone bill, house repairs, car repairs, etc.
Students before were seen as candidates not worthy to lend a loan to, but now many lenders have changed their perspective towards them. Considering their needs lenders are now providing small loans to students specially designed for them.
However, like any other loans, students also need to provide certain information regarding their educational and financial status. The application is then verified and reviewed by the lenders taking into account your circumstances as a student.
How Much Can a Student Borrow and for How Long?
The short-term small loans provided to students are similar to that of any other small loan. That means the amount that a student and an employed citizen can borrow is same. Though the amount range is same for both of them, the actual amount varies depending on your credit history.
Students can get a small loan for a sum of £1,000. The repayment of the same has to be done in one month. There are exceptions in certain cases, lenders provide you a loan which fits you and which you can repay comfortably.
Things to Consider Before Going for a Small Loan
- Higher Interest rates
As this loans are of low value and short period, the interest rates are high compared to the other loans. Students should go for small loans only if they are in urgent need of it and they have considered every other method to get money just to come up with no result.
- Credit history
The credit history depends on how you make the repayments. If you make the repayments on time, you would get a good credit score which would give you a good credit rating. This will help you in future to get a loan, as the lender would see that you have done repayments on time on your previous loans.
If you miss your repayments, the situation will be completely opposite. Not making payments on time will have a negative effect on your credit history. However, there are loans for people with bad credit but one must avoid having a bad credit history.
Small Loans for Bad Credit Direct Lender