Short Term Loans Online

Finding yourself in a situation where you urgently need money but payday is still a couple of days away is one of the most defeating feelings. At times like these, it’s hard to turn to friends or family to borrow money as most of them are likely in similar situations, and dipping into your savings is never a wise move as the risk of it becoming a habit is really high. These kinds of situations are probably familiar to most people who have had to face it at least once in their lifetimes. In the past, the very concept of short term loans was a novelty, offered only by dubious loan sharks within their community. However, with the advent of digital and financial technology, this facility is now not only widely available to most people, short term loans can be obtained from trusted service providers in an extremely convenient manner with reasonable interest rates.

What is a short term loan?

Short term loans are sums of money (usually small in value) borrowed from lending parties, to be repaid by the borrower after a mutually-agreed upon time period (usually within a month or so) along with an additional amount, known as interest. Interest is basically the lender’s fee, covering their cost of lending money to a third party. The most common forms of these kinds of loans are payday loans and cash advances, where people borrow money now with the intention of settling the debt with an expected income in the near future.

Why do people take short term loans?

There are numerous reasons for people to resort to taking out short term loans. Most often, it becomes a necessity when faced with a large, unexpected expense at a time when you have little to no money in hand but you foresee income in the near future.

Some unexpected expenses could be:

  • Medical emergency bills
  • Unexpected breakdowns and repairs (household appliances, vehicle, phone, laptop etc.)
  • Sudden debt repayment required
  • Overdue utility bills and disconnection
  • Request for a loan from a loved one

There are no ideal reasons to take out a loan; depending on the situation and the people involved, sometimes a loan becomes the only way out. There are many short term loan providers currently inloan the country, however a pioneer in this industry is Their loan process is short, convenient and quick.


Benefits of Short Term Loans

While they might seem daunting and very much like a bad idea, there are numerous benefits, some of which have been listed below:



These kinds of credit facilities are designed to be suitable for emergencies, therefore application generally takes just a few minutes with approval taking a maximum of a couple of hours. The entire process is very quick and short, and you can have cash in your hand in less than half a day,


Due to their very nature, these kinds of loans do not have complicated application procedures. Most require just a copy (or even just a photograph) of your National Identity Card and a photograph of yourself (it could even be an on-the-spot selfie taken from your mobile phone). Even someone with poor knowledge of technology and loan applications can easily navigate the entire process.


As technology has developed, so has the loan process benefited from its advancements. Nowadays, you can apply for short term loans in the form of online loans Sri Lanka, which means you can not only apply but receive the money without having to even leave your home, provided you have a computer or a smart phone with an internet connection. 


Short term loans are usually unsecured loans, which means that the borrower does not need to provide any collateral for the loan. This means that most people have a very high chance of their money request getting title loans approved unless they have a very poor credit history with many defaulted loans in the past.


As you are dealing with third party lenders, you can ensure that your money problems remain secret to your friends and family. No one will ever know that you needed to borrow money which would not be the case when borrowing from a known party or even a loan, for which you would need guarantors.

Dangers of Short Term Loans

However, as with all things in life, there’s always a caveat emptor for everything that seems too good to be true. There are many people who have found themselves in debt traps due to short term loans, and here are some reasons why.


Short term loans tend to be unsecured loans. This means that the risk of the loan is entirely on the lender as the borrower does not pledge any assets as collateral for the lender to seize and recover their money in the event of loan non-repayment or default. This risk translates into high interest rates as well as other fees that borrowers sometimes neglect to read up on prior to accepting the loan. Take great care to thoroughly read through the terms and conditions set by the money lender.


One of the biggest risks of resorting to short term loans is the high number of unethical lenders who offer these services. These lenders are unlicensed and not registered as incorporated companies, which means that they are not regulated and/or answerable to national laws and policies related to money lending in Sri Lanka. This means that not only do they charge exorbitant interests, they change the terms of the agreement as they wish without having to face any legal consequences. The worst part about dealing with unscrupulous parties like this is that they tend to resort to extremely unpleasant money collection methods. Selecting the correct service provider is of the utmost importance.


Finally, the biggest risk of short term loans is that all their benefits make it very easy to get used to taking out short term loans to fund your lifestyle. Some people take short term loans every month and settle it with their entire paycheck and take out more loans. This kind of cycle is extremely hard to break free from and can become a very big problem if you are ever in a situation where you can’t pay back your loan.

Short term loans are an ideal solution for certain times of need, and when used carefully, pose little long-term financial effects. There are many service providers in Sri Lanka who offer these kinds of credit facilities, ranging from private and government banks to smaller, newer FinTech ventures like OnCredit. Should you ever find yourself in a desperate situation, the thought of having a place to turn to can provide some much-needed relief, both financially as well as psychologically.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.