A 12-month loan, often referred to as a payday loan, is one of the best products in the financial sector today. They are unsecured for 12 months and can be easily applied without the need for lengthy loan sanction procedures. Financial crises may knock at any time, and seeking help from others is not always the best option. This is why these small short-term loans can be so beneficial to borrowers.
What is a 12-month loan and how it works?
A 12-month loan is basically a short-term personal loan borrowed from a lender or bank and can only be returned within a 12-month period. These do not require any separate accounts, so getting them is so easy and worry-free that monthly installments are only deducted from one person's normal payroll. Sometimes, one of the things that plague borrowers is high interest rates, which ultimately makes them expensive. However, most people only take these measures when they find themselves in a financial distress, so they don't take into account high interest rates.
You can apply for these loans online by filling out a form, and since these loans do not require a guarantor or credit score, the loan will be approved shortly. You can pay instalments through their payroll account using automatic payment methods or manually.
These loans can be accepted by anyone because they do not require a mortgage, so they can be used for any emergency medical or educational purpose.
12-month loan characteristics
Some of the distinctive features of these loans make them different:
- Easy to apply: People can easily apply for these loans online without much hassle. The eligibility criteria for these loans are easy, so anyone can apply without restrictions.
- 12-month period: A person can only get these loans within a 12-month period, which means that regardless of the amount of the loan, people must repay within one year.
- No guarantor and credit score are required: Unlike other loans, these payday loans do not require a good credit history or any form of guarantor, because financial urgency is the most important here, not financial history.
- Expensive interest rates: Because these loans are easy to issue and do not impose too much on the borrower in just 12 months, these loans are inevitably more expensive than other types of loans.
12-month loan benefits
Some of the advantages that a person can enjoy are:
- Any amount of loan can be obtained based on emergency and requirements.
- Anyone can apply for this type of loan and can afford education or medical expenses.
- These loans will be approved within 24 hours and will be credited directly to a bank account.
- People can get many discounts from these loans, and most banks and lenders design it as a marketing strategy. However, despite these, these discounts can benefit customers.
- They are highly flexible in terms of repayment because people can repay their loans according to their own wishes within one year.
- People can withdraw these loans and pay off in time to improve their credit scores.
- The 12-month loan is very flexible and can be used easily without the hassle of documentation and credit scoring.
- You can get this 12-month loan without any guarantor or mortgage document or a good credit score. The loan amount will be deposited directly into your bank account within 24 hours, thus providing you with a light loan.