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Short term personal loans have gained more popularity nowadays as compared to a decade before. There are a number of reasons why short term loans of personal nature are attractive for people to fulfil their wish-list. It is because you are not tied down to the ongoing schedule of repayments for a long run as well as due to its future flexibility. These loans come in various forms ranging from peer-to-peer promissory notes to more complex loans i.e. payday, mortgage, trade credit etc.

Short-term emergency loans generally require borrowers to repay the loan within the period of 3 months. At times, borrowers repay the loan very next day, these loans are called “payday loan”. As these types of loans are required to be paid back immediately, they are usually given to borrowers in small amount.

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