Borrowing Basics: Understanding 12 Month Loans


Popularly known as payday loans, 12-month loans are one of the best products in the financial circuit today. They are unsecured for a 12-month period and can be easily requested without a lengthy loan sanction process. A financial crisis can knock on one’s door at any time and asking for help from others is not always the best choice. This is why these short-term advances of small amount can be so advantageous for the borrower.

What is a 12-month loan and how does it work?

A 12-month loan is basically a short-term personal loan borrowed from a lender or bank and must be repaid only in a 12-month period. These do not need a separate account, which is why getting them is so easy and hassle-free that the monthly fees are deducted only from one’s regular payroll account. One of the things that bothers borrowers at times is the high interest rates, which ultimately makes these expensive. But most people take these only when they find themselves in a sudden financial downturn and thus do not give much thought to the higher interest rates.

You can apply for these loans online by filling out the forms and because these loans do not require collateral or credit, the loans are sanctioned fairly quickly. You can pay the fees through your payroll account or using the automatic payment method or the manual mode.

These loans can be taken by anyone as there is no need for collateral, so these loans can be borrowed to cover any urgent medical or educational purposes.

Features of 12-month loans

There are some salient features of these loans that set them apart from others:

  • Easy application: one can easily apply for these loans online without many problems. The qualifying criteria of these loans are easy and, therefore, anyone can apply for them without restrictions.

  • 12-month duration: one can take these loans only for a 12-month duration, which means that one will have to repay within a year, regardless of the loan amount.

  • No collateral and credit score is required: unlike other loans, these payday loans do not require a good credit history or any kind of guarantor, because here financial urgency is paramount, and not financial history.

  • Expensive interest rates: because these loans are easily donated and also for only a 12-month period without many obligations imposed on the borrower, it is inevitable that these loans cost more compared to other type of loans.

Benefits of 12-month loans

Some of the benefits that can be enjoyed are:

  • One can get a loan for any amount depending on the crisis and requirements.

  • Anyone can apply for this type of loan and it can take care of educational or medical expenses.

  • These loans are approved within 24 hours and will be credited directly to one’s bank account.

  • One can take advantage of many discount offers on these loans which most banks and lenders project as a marketing strategy. Yet these discounts are extremely beneficial to a customer.

  • They are very flexible in terms of repayment as one can repay the loan at will within one year.

  • One can take these loans and repay them on time to increase their credit score.

  • 12-month loans are flexible and can be easily availed without much hassle of documentation and credit scoring.

  • These 12-month loans can be obtained without the need of any collateral or additional document or good credit score and the loan amount would be credited within 24 hours directly to your bank account thus offering you easy loans.



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