The short-term loan is a loan granted by a bank or credit institution whose duration cannot exceed 18 months. The tool allows you to quickly get money in case of urgent need . In any case, the so-called “revocation loans” are also part of the short-term loans , or loans for an indefinite period from which the bank has the right to withdraw, requesting repayment of the amounts disbursed at short notice short term loans.
The short term loans are divided into two types:
- Direct loans
- Disposal operations
The following are classified as direct loans: the opening of a current account credit, the guaranteed advances, the foreign exchange subsidy visit this page.
Direct loan with credit line
The direct loan with opening of credit on a current account (also called overdraft) provides that the bank makes a predetermined sum available on the customer’s current account, for a period of time that can be determined or indefinite. If determined, the duration must not exceed 18 months, if indeterminate the credit line is active until the bank revokes it. In the latter case, the debt must be repaid in a lump sum.
The opening of credit on a current account is governed by a contract in which the following must be indicated: the amount of the credit line, the interest rate applied, the costs associated with the operation, any maturity and days of notice in case of withdrawal of one of the two parties.