Popular Uses For Small, Short Term Loans
Short term loans
No matter how financially stable you are, there is always the possibility that down the road you will run into an unexpected expense. A sudden cost that requires more money than you have on hand to resolve.
In these scenarios where time is of the essence, securing a traditional bank loan may not be a practical solution. Not everyone has access to high street banks and not everyone would pass the credit checks required to apply for mainstream credit.
In 2021 upwards of 1.3 million adults remain unbanked in Britain. An estimated 2 million also took out a high-cost loan because they were unable to access any other form of credit.
The processing time combined with the time spent applying, rule out bank loans as an option for anyone with an immediate financial need.
For these people, small short term loans act as a financial lifeline. Acquiring a personal loan from a reputable, FCA approved lender like Scotcash can help you to fund your emergency expenditure quickly and affordably. Whether it’s to cover the costs of a crisis or to fund a special event, personal loans such as ours exist to give you peace of mind.
Our affordable loan scheme has helped many people get back on their feet. We are a direct lender that offers loans as low as £100 so we can help you to help yourself. At Scotcash we offer a range of regular repayment options that are fully flexible to your financial situation. With options to pay weekly, fortnightly, four-weekly or monthly you can pick a schedule that is best suited to you.
All Scotcash loans are repaid through your bank account via Direct Debit. As an independent Community Lender, we are committed to reducing financial exclusion, so if you don’t have a bank account we may be able to help you open one. Scotcash are more than just another short term loans lender, we provide a range of affordable loans, financial support and advice to help you make the most of your money.
Affordable loan scheme
At Scotcash we take an affordable approach to finance, our loans are made to suit everyone no matter their financial situation. We make decisions based on several things including your current affordability and we never lend more than we know you can afford, so you know you are in safe hands with a Scotcash loan.
In an average year, we receive thousands of enquiries and try to approve as many as we can. The average term for our loans is 39 weeks, with a weekly payment of £18.61 to cover an average loan amount of £543. As approachable as we are accessible our loans are designed to save you from the financial burden of higher-cost loans.
Popular uses for short term loans
There are many reasons why you might need a short term loan. It could be to cover a personal expense or be used as a means to build credit. Here at Scotcash most of the loans we have issued have been to finance a life event, a life change or a big purchase. Some of the most popular uses for a short term loan are as follows.
Home decoration and home improvement loans
Whether it’s to fix a broken boiler, repair property damage or add the extension you’ve always wanted, small loans are often used towards home repairs. In recent years, almost 50% of the loans we granted were used in this way. If you are confident that you can meet your repayments, small personal loans can be a great way to kick start a home transformation.
Needing help to spread the cost of Christmas is another common reason as to why someone might seek out a small short term loan. Festive finances can be a heavy hit to your savings, which is why many choose to spread the cost and repay it in instalments. 30% of our borrowers took this approach in 2021/22, repaying at a pace that suited them so they could properly enjoy the holiday.
Maybe it’s a trip of a lifetime, a honeymoon or a visit to family abroad, whatever the reason holiday loans are a popular choice for borrowers. Taking a small short loan means that you don’t have to cover the full cost of your trip at once. Paying a holiday off in instalments makes it more manageable and it prevents you, and 20% of our borrowers, from missing out on their dream getaway.
While short term loans are great for covering big purchases and special life events, they exist to help you in the hard times too. 8% of the loans we issue were given to those struggling to fund the cost of a family funeral.
The expenses associated with funerals have risen dramatically in the past few years and more and more people find themselves unable to cope with the sudden expense. Funeral loans allow you to pay off the cost over a longer period so you can focus on what’s really important. In times of financial distress, small short term loans can offer peace of mind for you and your family.
And many more uses
These are only a few of many reasons why someone may benefit from borrowing money, other reasons include needing money for work or school clothes, driving lessons, family events, vehicle repairs and more.
If you want to take control of your finances and think you could benefit from a Scotcash loan get in touch today.
Apply for a Scotcash loan today
We aim to help as many people as possible with our affordable loan scheme. Once we have received your application we will assess it by looking at your income and expenditure and any existing debts you may have. If you are approved, together we will decide on a repayment plan that works for you.
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Unlike some lenders, all our loans are means tested and we only lend what we know you can afford.
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