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Learn More About Short-Term Loans

The length of a short-term loan depends entirely on the lender, and while many short-term loans may result in just one repayment date, some short-term loans are instalment loans that are paid back over time in a series of repayments.

How much do you want to borrow?

On Stride Financial offers repayment terms of 1 – 5 years, depending on loan amount.
Actual loan amount, APR and term may vary based on actual application details.

A Short-Term Loan Guide

Finding the right loan provider can be tricky, which is why On Stride Financial provides customers with loans that work. We offer variable loan amounts and terms, and an online application that's easy for borrowers to understand.

On Stride Financial loans are unsecured, and available from £1,000 to £10,000. Loan durations of one to five years are available, and an approved customer will receive an APR rate from 29% - 89% based on their own financial history.

On Stride Financial is rated 4.8 out of 5 by Reviews.co.uk based on 1,252 reviews

Understanding Short-Term Loans

For anyone who has thought about taking on a personal loan, it's no secret that there are many options to choose from. Before even applying, a potential borrower has to sift through options like unsecured loans vs. secured loans, and decide if they should take an instalment loan or a loan with just one repayment. A helpful place to start is understanding precisely what a "short-term loan" is.

It's important to understand that short-term loans can have various repayment terms. More often, short-term loans last between 30 and 90 days, and rarely more than a year. The length of a short-term loan depends entirely on the lender, and while many short-term loans may result in just one repayment date, some short-term loans are instalment loans, that are repaid over time in a series of repayments.

"The length of a short-term loan depends entirely on the lender…"

Like any loan, a short-term loan will include some amount of interest repaid to the lender. This is a pre-arranged amount, and is typically stated in advance as an APR. This APR is used to determine the cost of the loan.

  • APR and Short-Term Loans

    When exploring loan options, you'll notice that every lender has their own distinct "Representative APR." APR stands for Annual Percentage Rate and describes not only the amount of interest you'll pay on a loan, but also any additional fees or finance charges. The APR always describes the total cost of the loan if borrowed for a full year, even if your borrowing term is shorter.

    As for the "representative" aspect of APR, this indicates that the APR presented on a lender’s advertisement or website reflects what the customer will likely be available to the customer if they applied and meet the lending criteria. Actual APR cannot be determined until the customer actually applies and is approved for a loan.

    "The APR always describes the total cost of the loan if borrowed for a full year."

    While APR is an important element to consider in taking out a loan, there are two other factors that you should not forget to consider: the total cost of the loan, and your loan repayment schedule.

    Here's an example to help you understand: With an On Stride Financial loan, customers are approved for one of three APRs, depending on their financial history — 29%, 45% or 89%. Let's say that Customer A is approved for a £2,500 loan, with an APR of 29%, to be repaid over one year. In the meantime, Customer B is approved for a £2,500 loan, with an APR of 89%, to be repaid over three years. While Customer A received the smaller APR, repaying the loan in a year results in a monthly repayment amount of £238.83, while Customer B's monthly repayment amount is £159.26. Altogether, Customer A will repay a total of £2,865.90, while Customer B will repay a total of £5,733.37.

    The purpose of this example isn't to state which option is better, but simply to illuminate the reality that choosing a loan — complete with a repayment schedule and a total cost of credit to be repaid in full at the end of the loan cycle — is a complex and personal decision, and every element should be considered in regards to the way it will affect you as an individual customer with unique financial needs.

  • Deciding to Apply

    If you find yourself in need of extra funds, it's important to do your research before committing to a loan or lender. Regardless of loan amount, length or your personal credit, borrowing money from a loan provider is a promise that you will repay those funds with interest. This means that the first question must be, "Can I keep that promise?" Do you have a steady source of income? Can you budget to cover the extra cash you'll need to repay? Will you be able to have the money together by the agreed-upon repayment date? If the answer to any of these questions is "no," you may want to consider another option.

    "Choosing a loan provider is a serious commitment, and one not to be taken lightly."

    However, if you feel prepared to make your repayments in full and on time, then you've reached the point where you can consider taking out a loan. Researching the various loan types available to you is critical. If you need a smaller amount of cash — say, £200 — then it’s likely that a short-term personal loan will be enough. If, on the other hand, you need a substantial amount of cash — for instance, £2,000 — you may find that a longer-term instalment loan has a more manageable repayment schedule.

    Finally, research your potential direct lenders, and not just their rates and terms. Take some time to review their site and, if possible, interact with their customer service. This is a great way to know what future interactions will be like, and whether or not they're capable of answering tough questions.

    Remember that choosing a loan provider is a serious commitment, and one not to be taken lightly. By taking the time to make the right choice, you'll be well on your way to repaying on time and in full.

Short-Term Loan FAQs

  1. 1. What is the best short-term loan?

    Believe it or not, this question doesn't have a hard and fast answer. The reality is that the best "short-term loan" highly depends on you and your needs. This is why it's so important to take your time when selecting a lender. Consider exactly what you need from a loan, both in terms of amount and time, and find lenders that can provide it to you. Look too at your own credit situation, and use this information to narrow down your search.

    Ultimately, the "best loan" is a combination between the lender, what they offer, and your unique financial situation.

  2. 2. Is On Stride Financial a short-term loan?

    While a "short-term loan" can't have a clearly defined length, short-term loans are almost always much shorter than an On Stride Financial loan. We offer loan lengths of one to five years. A typical short-term loan generally lasts between 30 and 90 days, but can be up to a year.

  3. 3. How do I know what APR I can qualify for?

    At On Stride Financial, we offer three different APRs: 29%, 45% and 89%. Once an application has been submitted, we assess that applicant's information to get a sense of what they are capable of repaying, and select applicants based on our internal criteria.

The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.