Lenders give the short term loans to lower income group and salaried class who usually has shortage of money on the basis of the credibility of that person whether he is able to pay pack the amount of loan and the interest rates and other charges if any imposed on that borrower. Some companies do not provide the loans if the credit rating of the person is not good. But many companies also provide the facility to the person with poor credit rating. They offer the facility of personal loans for poor credit.
To get the personal loans, 3 month loans, 6 months short term loans, payday loans, quick loans, individual just needs to apply by giving certain personal information required by the company. If the company is satisfied with the information, the money is being transferred to the bank account of the borrower. The borrower pays back the amount on installments with interest set by the negotiation between the lender and borrower. If he cannot pay back the amount on time, penalty is imposed on the borrower.
If the credit rating of the person is not good, he can get facility of personal loans for poor credit. This means that even his credibility is not good, he can sort out his personal issues by getting short term loans, payday loans, personal loans and many more types. This includes 3 month loans, 6 month loans and 9 month loans as per required by the borrower.
As the company lends the amount even because of poor credibility, terms and conditions for personal loans with bad credit are different. Strict terms are imposed by the lenders on the borrowers. Lenders charge high rate of interest from the borrowers loans for poor credit. Certain penalties are also imposed by some lenders on the borrowers because of the high risk of not paying back the amount of loan.