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Short Term Loans For Students - How To Secure A Loan As A Student

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Loans For Students - What You Need To Know!

Our short term loans for students are designed to provide financial assistance to those who are pursuing full-time education. We know how challenging it can be to manage your expenses without a full-time job and therefore we have designed a solution that provides you with the necessary financial assistance. Money Pig’s short term loans for students help overcome the financial struggles which come with pursuing full-time education.

Not very long ago, short term loans for students were unheard of because students did not have the ability to repay. In fact, you may still not be able to find one that allows you the sort of flexibility and relaxed eligibility criteria as our lenders do. Money Pig makes it a point to partners up with lenders who understand the needs of students and their ability to repay it.

Money Pig’s lenders are willing to offer short term loans for students. To secure this type of loan, students need to furnish relevant information and then our Experts would make a thorough assessment and put each applicant through a lender who is most likely to sanction their loan. Money Pig understands that students can conveniently repay their loans with the many opportunities available in the form of part-time and work-from-home opportunities.

FAQs regarding Loans for Students

  1. What is a loan for students and what is the borrowing limit?
  2. Would my bank offer me a student loan?
  3. How long does it take to process short term loans for students?
  4. How long is the payback period of short term loans for students?
  5. Do existing student loans borrowed under the government scheme impact my application with Money Pig?
  6. How does Money Pig process my application for short term loans for students?
  7. Will a short term loan for student affect the borrower’s credit rating?
  8. Is short term loan for students available only for educational purposes?
  9. Can I borrow short term loans for students despite bad credit history?
  10. What are the eligibility criteria for a short term loan for students?
  11. Do I need to have a part-time job to qualify for a student loan?
  12. How soon can I get a short term loan for a student?
  13. What are my alternatives for student loans?
  14. Which loan facility should I choose as a student?
  15. How does Money Pig collect money lent to me?
  16. What can happen in the case of late repayment of loans for students?
  17. What happens in case of non-payment of loans for students?
  18. What is your renewal policy for short term loans for students?
short term loans students

What is a loan for students and what is the borrowing limit?

Short term loans for students refer to the financial assistance that Money Pig’s network of lenders is willing to extend to students, based on certain criteria. These student loans are available for smaller amounts, ranging between £50 to £1,000 and are ideal to manage sudden short-term expenses. However, based on several other criteria and your repayment capability, Money Pig’s network of lenders would be willing to sanction loans up to £5,000.

Although Money Pig has processed quite a few short term loans for students, we strongly recommend that you borrow wisely. That's because short term loans for students often charge higher APRs. So, borrowing more than you need may lead to a financial crisis unless you graduate and can repay it before the interest piles up. Also, we recommend that if you have any other borrowing option, you consider exploring that before applying for a student loan.

Would my bank offer me a student loan?

Students often don’t qualify for loans from reputed banks due to their current incapacity to repay the loan. Most banks are hesitant when it comes to approving student loans and do not realize how capable the present generation is of repaying it. At Money Pig, we partner-up with direct lenders that have a more friendly approach when it comes to approving student loans.

So, while your bank may not be your best option for a student loan, you may still be able to get financial assistance in the form of overdrafts and credit cards. Although there are a handful of banks that may allow loans for students in these forms, the amount may not suffice. So, you need to check with your bank if they offer a student loan based on your part-time employment history or other income streams, indicating your ability to repay the loan. However, if your bank turns you down, don’t be disheartened as Money Pig’s direct lenders would be happy to provide you with the necessary financial assistance.

How long does it take to process short term loans for students?

Money Pig can help you connect with lenders willing to sanction short term loans for students, almost immediately. We completely understand the urgencies that come up while you are still studying and the helplessness that follows. So, when it comes to approving loans for students, we speed up the entire process. We are happy to inform you that most of the short term loans for students are processed and sanctioned on the same day. In fact, there have been times when the loan amount has been approved in less than an hour’s time. In other words, you are most likely to have the loan amount credited to your account on the same day.

How long is the payback period of short term loans for students?

Most of our lenders are willing to lend short term loans for students up to £5000. As an applicant, you are free to apply for any amount and after we receive your application, we would intimate you regarding the amount approved. This is usually determined on the basis of your ability to repay and clear the debt. Likewise, the duration is something that you can choose and most of our lenders offer repayment periods up to 3 years. However, if you are not sure of the duration for which you wish to pick a loan, always consider a longer payback period as that distributes the sum borrowed into smaller monthly payments.

Do existing student loans borrowed under the government scheme impact my application with Money Pig?

No, it won’t. That’s because the repayment of your student loan sanctioned under the government scheme becomes payable only when you have completed your education and have earned a certain amount. So, that would not have much of an effect on your application for a short term loan for students. For better clarity, we recommend that you fill in our application for the short term student loan. Be assured that this will not adversely impact your credit score as Money Pig is only an intermediary and not a direct lender. So, even if you apply, we do not run a credit check on you. Your initial application with Money Pig is solely to assess your eligibility and to put you through the most suitable direct lenders.

How does Money Pig process my application for a short term loan for students?

Money Pig collects your basic details to ensure your suitability for the short term loan for students, which includes confirming your name, address, educational details, and nationality. It takes less than a couple of minutes to complete this application and once you are done, we find you the best lender from our network. As all our lenders are legitimate, you can be sure that you are transacting with the right people who are regulated by the FCA.

Each day, we receive thousands of applications for loans, but we prioritize short term loans for students as we understand how stressful the waiting period can be for students. Next, you will receive a proposal from a suitable lender, and once you agree to the terms such as interest rate and repayment period, the direct lender takes the next step and runs a soft credit check.

You must know that up to fifty soft credit checks do not hurt your credit score. A soft credit check is only carried out to assess your suitability for a short term loan for students and only after that, a hard credit check follows. Although this process may sound time-consuming, it isn’t and most of the time short term loans for students are approved within hours of applying for it. So, in case you need the loan urgently, do not think twice before applying for Money Pig’s short term loan for students.

Will a short term loan for student affect the borrower’s credit rating?

Money Pig understands how deeply your credit score would impact your future. So, we protect you throughout the loan approval process and do all that we can to protect your best interests. This includes clarifying the terms of the student loan to you. Also, you must know that you can get into trouble even before the loan is credited to your account. Not many intermediaries and lenders inform you about this but if your loan application is rejected then that could lower your credit score.

If you are very concerned about your ability to repay, we strongly recommend that you pick a loan for a longer duration. That distributes the amount into smaller monthly installments but increases the amount of aggregate interest that you pay on it.

Finally, the impact of the student loan on your credit score largely depends on how you fulfill your obligation to repay the short term loan that you borrow as a student. By repaying it in a prompt and timely manner, you can be sure that it would not hurt your credit score. However, if you fail to do so, then you would be held liable for the same, and that would impact your credit score.

Is short term loan for students available only for educational purposes?

Short term loan for students is a type of student loan, which is extended to students so that they can fulfill their financial obligations. This may include paying for sudden repairs, buying a car, project fee or for any other purposes. Also, these short term loans for students offers financial assistance that helps them upgrade their lifestyle or use it for other constructive purposes.

In case you wish to borrow a larger amount, we recommend that you choose a longer repayment period, so that you can repay it in smaller amounts. However, most people wrongly assume that short term loans for students are sanctioned exclusively for educational expenses. As a matter of fact, you are free to use this loan amount as you wish, and without any restrictions.

Can I borrow short term loans for students despite bad credit history?

If you have a bad credit history and have decided to pursue education for a while, then we don’t let your past haunt you. In the UK, short term loans for bad credit can only be obtained from direct lenders, and while you do so, you need to have some options to choose from. So, at Money Pig, we bring you a network of lenders willing to extend short term loans for students, just to help you cope up with your expenses while pursuing your education. We know the harsh impact of a bad credit score on one’s life, and therefore we partner up with direct lenders that are willing to extend financial assistance to those with a bad credit history.

What are the eligibility criteria for a short term loan for students?

To qualify for a short term loan for students, you need to be a UK citizen pursuing full-time education from a recognized university and must not be a minor. So, it is essential that you must have completed at least eighteen years of age, in order to apply for a short term loan for students. Also, you must have a bank account and a debit card through which you can transact, meaning receive the sanctioned loan amount and make necessary repayments.

Do I need to have a part-time job to qualify for a student loan?

While you do not necessarily need to have part-time employment to qualify for Money Pig’s loan for students, we do consider that to be a plus. Part-time income or any other revenue streams indicate your ability to promptly repay the loan, and our creditors definitely take that into account. However, you are free to apply for a short term loan for students even if you do not have a part-time job, and we will do our best to get you a fair deal. With a large network of direct lenders, Money Pig should not have much of a problem processing your loan request and channelizing it to the right lender.

How soon can I get a short term loan for students?

Depending on your needs, our Experts would do their best to speed up the process and connect you to the right buyer. In most cases, this is done on the same day and therefore, you need not worry about any exigency that you may have to deal with. So, be assured that we are here to help you get a short term loan to the earliest, without any delay.

What are my alternatives for student loans?

As a student, you have limited borrowing options and can make use of a bank overdraft facility or credit card made available to students by banks. However, most banks offer interest-free loans to students based on your account balance, monthly credits to your account and other factors. So, if you are looking for a student loan, then it is more than likely that you do not qualify for any of these. So, your only other option is to apply for a short term loan for students, from a direct lender and to get you a fair deal, we connect you with an entire network of direct lenders.

Which loan facility should I choose as a student?

If you are lucky enough to have options such as overdraft and credit card offered to you by your bank, then we recommend that you make a decision, which is based on two factors — interest rates and the repayment period. While it would be prudent to choose the option with the lowest interest rate, you also need to pick one with a longer repayment period, to ensure that you can repay in smaller amounts.

Although you may have a bright career ahead of you after graduation, you would also have expenses coming your way. The transformation from a student to a full-time professional does come with higher rents, a better car, and an improved lifestyle — all of which need to be done during the initial years of being employed. Therefore, we recommend that you borrow the loan based on both these factors and make the best decision possible.

How does Money Pig collect money lent to me?

Money Pig neither lends not does it collect money from you because we are an intermediary that helps you connect with legitimate direct lenders. Once we do that, the transaction is between you and the direct lender from whom you borrow a short term loan for student. As our network includes several direct lenders, each has his or her own collection policy. We recommend that you seek more clarity on it before entering into a commitment with any particular lender.

However, in most cases, the direct lender may penalize you for non-payment or delayed payment by increasing the interest rates. Also, depending on their internal policies, the lender may pass on the matter to a collection agency. As defaulting may also adversely affect your credit score and impact your future, we recommend that you borrow a short term loan for student only when you are sure of repaying it.

What can happen in case of late repayment of loans for students?

The repercussions of late repayment depend upon the direct lender’s late repayment policies. So that differs depending on whom you are transacting with. However, we encourage applicants to clarify this with the direct lender, before borrowing a short term loan for students. Also, most of our direct lenders would excuse a late repayment if informed well in advance. Again, you need to confirm about this flexibility from the direct lender you wish to borrow from.

When intimated of late payment, the direct lender may offer an extension or renewal of the loan. In this case, we strongly recommend that you confirm the additional interest that you may have to pay. Besides these direct consequences, the late repayment of loans for students may also lower your credit score, making you ineligible for bank loans once you complete your education and get full-time employment.

What happens in the case of non-payment of loans for students?

We advise you to borrow a loan only if you can repay it on time without any defaults as defaulting may leave a serious impact on your future. Besides lowering your credit score, the non-payment of short term loans for students can also lead to the direct lender initiating legal action against you. If this happens, you may not qualify for other loans, which may hurt your future plans. In the UK, bad credit disqualifies you from loans sanctioned by premier banks for at least a period of six years.

What is your renewal policy for short term loans for students?

The student loan renewal policy differs from one lender to another, but as a responsible intermediary, we would like to warn you against auto-renewals. Basically, auto-renewal refers to the process of automatic renewal of your short term loan for students, upon late payment or non-payment of the loan. So, before entering into a loan agreement with your direct lender, make it a point to ensure that it does not contain an auto-decision clause, which leaves you at the receiving end. Basically, the auto-decision clause gives the decision-making power to the lender, with regards to renewals. So, if you default or make a late payment, then the direct lender is free to renew the loan without consulting you. This clause is undesirable because it is possible that your lender may increase the interest rates upon renewal. Although most of our direct lenders do not do that, there is always a possibility.

 

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