Short-term loan - bridge your financial bottleneck

What is a short-term loan?

A short-term loan is taken out for a short period of time and is usually paid out quickly. We have summarized the most important features for you:

Term: The term is usually less than 1 year, usually only a few days, weeks or months.

Loan amount: The amount taken out for a short-term loan is usually small. It is often no more than 100 to 1,000 euros.

Fees: Interest rates are often higher compared to long-term loans, as short-term loans are only intended for short-term bridging.

Fast payout: The payout is usually made very quickly within 2 working days, as the money is usually needed urgently.

Repayment: Repayment is rarely made in a few installments. In most cases, the loan amount is repaid in full at the end of the term.

Who is a short-term loan suitable for?

A short-term loan is usually possible for applicants of legal age. The most common reasons for a bridging loan are:

• Emergencies such as unexpected expenses for a car repair or medical emergencies such as veterinary or dental costs.

• Financial bottlenecks between two salaries or a short-term financial emergency that will improve again in the foreseeable future.

• Smaller purchases such as a new washing machine that has to be bought before the next salary is received.

All you need for a pawn loan is collateral. Depending on the provider of the loan, you must either have a good credit rating and/or regular salary receipts for other forms of credit to be granted.

Where can I get a short-term loan?

There are different providers for short-term loans. Below you will find various options with different requirements.

Bank loan

The bank can often help you out with short-term financial bottlenecks. There are various options available to you, from an overdraft facility to a consumer loan.

Requirements: In order to obtain a short-term loan from the bank, you must generally have regular income from employment. You must also have a good credit rating. Of course, you also need a salary account with the lending bank.

Online loan

If you only need a small amount, an online loan could also be the right solution for you. Although most platforms for personal loans are also backed by banks, in this case a good credit rating is often sufficient for a loan to be granted.

Requirements: You must have a medium to good credit rating with online loan providers. This will be checked directly. If you are approved, you must identify yourself online with a valid ID document. You can usually sign your contract via SMS-Tan.

pawn loan

If you have collateral that you can do without for the period of your loan, a pawn loan is suitable for you. You deposit your item in insured storage and can take out a partial value of the item as a pawn loan. At the end of the term, you pay back the money and get your item back. If you need more time, you can also extend or reduce your pawn loan. If you are unable to repay the loan, you can also keep the money and give your item to the pawn shop. In any case, you will be debt-free afterwards.

Requirements: You need collateral that you can deposit as security. There are no other requirements such as a good credit rating or regular salary receipts at the pawn shop.

Car loan

If you own a car that is neither leased nor financed, a car loan is suitable for you. You put your car up as collateral and get a partial value paid out as a loan. In Austria, pawn shops such as CASHY also allow you to continue driving your car for the entire term of a loan of up to EUR 10,000. The same conditions also apply to a motorcycle pawn loan.

Requirements: A car or motorcycle that you own and is not older than 12 years (except classic cars).

Salary advance

If you are in an upright employment relationship, it is possible in many companies to receive a salary advance. This loan is either repaid with the next vacation or Christmas bonus, but can also be paid off with planned, affordable overtime, for example. Payment in installments is also possible in many cases.

Requirements: You are in a valid employment relationship and have an employer who can grant you a loan.

What are the advantages and disadvantages of a short-term loan?

If none of the above options are suitable for you, you may be able to find someone in your family or circle of friends who can lend you money. If you can present a repayment plan, people are generally more willing to grant you a loan.

Errors and omissions excepted. All information without guarantee.