Other Short Term Working Capital Loans
NIC Asia Premium Business Loan is designed to offer a wide variety of long and short term financing requirements (both funded and non-funded ) of your business enterprises with attractive features.
NIC Asia Premium Business Loan is designed to offer a wide variety of long and short term financing requirements (both funded and non-funded ) of your business enterprises with attractive features.
Last Updated Date: May 17, 2022
NIC Asia bank has established a history in the banking sector by establishing itself on 30 June 2013 as the first type of merger bank between the two commercial banks, NIC Bank and Bank of Asia. Since its inception, it has been operating successfully and has today become one of the largest private sector commercial banks in the country in terms of the capital base, balance sheet size, ATM Locations and the number of the branches. The Bank has 327 branches in Nepal, 102 extension counters, 64 branchless banks and 469 ATMs. The main focus of this bank is meritocracy, transparency, professionalism, team spirit and service excellency. The main vision of this bank is to be one of the most respectable and honorable banks in terms of financial performance. The mission of this bank is to become a leading bank in Nepal by providing complete financial solutions to its customers.
A short term loan is a type of loan that is obtained to support a temporary personal or business capital need. As it is a type of credit, it involves repaying the principle amount with interest by a given due date, which is usually within a year from getting the loan. A short term loan is a valuable option, especially for small businesses or start-ups that are not yet eligible for a credit line from a bank. The loan involves lower borrowed amounts, which may range from $100 to as much as $100,000. Short term loans are suitable not only for businesses but also for individuals who find themselves with a temporary, sudden cash flow issue.
Short term loans are called such because of how quickly the loan needs to be paid off. In most cases, it must be paid off within six months to a year – at most, 18 months. Any longer loan term than that is considered a medium term or long term loan. Long term loans can last from just over a year to 25 years. Some short term loans don’t specify a payment schedule or a specific due date. They simply allow the borrower to pay back the loan at their own pace. When your business doesn't qualify for a line of credit from a bank, you might still have success in obtaining money from then in the form of a one-time, short-term loan (less than a year) to finance your temporary working capital needs.
There are many advantages for the borrower in taking out a loan for only a brief period of time, including the following:
As short term loans need to be paid off within about a year, there are lower total interest payments. Compared to long term loans, the amount of interest paid is significantly less.
These loans are considered less risky compared to long term loans because of a shorter maturity date. The borrower’s ability to repay a loan is less likely to change significantly over a short frame of time. Thus, the time it takes for a lender underwriting to process the loan is shorter. Thus, the borrower can obtain the needed funds more quickly.
Short term loans are the lifesavers of smaller businesses or individuals who suffer from less than stellar credit scores. The requirements for such loans are generally easier to meet, in part because such loans are usually for relatively small amounts, as compared to the amount of money usually borrowed on a long term basis.
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