This is a detailed guide on how to get short term loans in Ghana.
Short term loans are obtained to aid an urgent or temporary need whether business or personal.
Since it is a form of credit, an amount is borrowed with a fixed form of interest to be paid within a specific period of time usually days or a year maximum.
In Ghana, it’s no different. People are faced with temporary and urgent needs for personal or business purposes that tend to make them source for short term loans.
Getting loans in Ghana may seem difficult without the right information.
If you are looking for how to get loans in Ghana with low collateral, this guide will help.
In this guide, I will be showing you how to get short term loans in Ghana.
Advantages Of Getting Short Term Loans In Ghana
There are many advantages of getting a short term loan over long term loans in Ghana.
1. Lower Accumulated Interest
When you obtain a loan, you are required to pay back within a maximum of one year.
This makes it more convenient for the individual who obtained the loan because the interest that would be accumulated within the period would be lesser when compared to loans that exceed one year.
2. Fast Response
Given the fact that the loan requested is small and the period of payment with interest doesn’t exceed the maximum duration of one year, the issuer of the loan doesn’t have a problem issuing the loan quickly.
The time frame in which the request for a short term loan is processed in Ghana is shorter compared to loans that would exceed the one-year duration.
3. Easy To Acquire
Getting short term loans are far easier compared to long term loans because the requirements are easy to meet.
They understand the urgency and the small amount of cash loan requested, so they don’t burden the individual seeking the loan with so many requirements.
This is one of the reasons why short term loans have saved a lot of businesses in Ghana and gotten a lot of people out of financial problems over the years.
The only disadvantage of short term loans in Ghana is the fact that they only provide smaller amounts compared to Long term loans.
This is so because it is expected to be repaid within a short period of time and not to put so much weight on the borrower when its time to pay back.
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How To Get Short Term Loans In Ghana
There are various ways to obtain short-term loans in Ghana. In this section, I will be showing you some of the ways you can get loans for a short time in Ghana.
1. Family And Friends
This is one of the easiest ways to get a short term loan in Ghana.
When pressing needs arise or urgent financial situations come up and require immediate attention, the first point of call for anyone is family or friends in cases where they are available.
Getting short term loans from family members should be quite easier given the fact that you are closer to them and they shouldn’t hesitate in helping you out of such situations.
Some family members may choose to give you short term loans, without collateral or demanding you payback.
Some may demand payback but with little or no interest attached. Also, friends can step in to help out with such amount of money and may either request a payback within a short period of time or no payback at all.
The beauty of this method is the fact that there aren’t many requirements or the burden of meeting up too many requirements.
2. Pawn Shops
In Ghana, Pawn shops are also a great source of short term loans. To get short term loans from pawnshops, you would be expected to present an item of immense value.
The item may be expected to match up with the requested amount of loan and when the item is presented, the pawnshop attendant may present papers for you to sign.
In most cases, the condition of the pawnshop granting you the short term loan is on the grounds that you will pay back within the agreed short term loan period.
If you default in your payment, the item would be seized or sold to recover the debt you owe.
In some cases, the penalty may be more severe because these pawn shops are private businesses and the owners may choose to deal with you as they deem it fit.
3. Short Term Loan Offices
Another place to get short term loans in Ghana are loan offices.
These are offices that are set up in Ghana to offer financial assistance to small scale businesses and individuals who seek short term loans.
These offices make these short term loans available to loan seekers who have met their requirements.
In most cases, they would request for valid forms of identifications, account history, or guarantor.
Given the fact that they are not family members or friends who know you and have a certain level of trust for you, they intend protecting themselves from been duped or gotten involved in one form of criminal activity or the other.
When the requirements are met, the process of issuing the short term loan is easy and would attract a considerable level of interest.
There are a very good number of firms and financial institutions that make short-term loans available to people online.
In Ghana, we have KIVA and a host of other online platforms where people can obtain short term loans online.
The beauty of gaining access to short term loans online is the speed and less rigorous process involved.
Most of them approve loans within 24 hours and get the cash sent directly to the bank account you provided.
The online method of obtaining a short term loan would require a good mobile device and a strong network connection.
It would also require you to fill a form provided by the lender which would contain your personal details, reason for the loan, present occupation, salary, location, guarantor’s contact details alongside yours, and in most cases they may request you scan copies of your account history.
The penalty for defaulting in payment after the agreed period could be blacklisting you from obtaining any loan ever again from any firm or financial institution in the future.
In some cases, it may go as far as restricting you from traveling outside the country or attract criminal penalty punishable by law.
As smooth and easy as this process may seem, you should be sure to check the star ratings or make thorough research on the company before applying for the short term loan onlinr, so as to avoid getting your details into the hands of fraudsters.
Another place to get short term loans in Ghana is the Bank. In Ghana, there are banks that make short-term loans available to their customers.
They do this to support small-scale businesses and in turn, generate income through interest rates.
These banks give out these loans to these individuals but not until they have met all the requirements placed by the bank.
The short term loans offered by these banks are some times higher when compared to other financial institutions, and the process of approving such loans are more hectic compared to the rest.
When it comes to giving out loans to individuals, banks exercise extreme caution and don’t easily give out short term loans.
This is one of the reasons why small businesses and individuals rarely go straight to the banks for short-term loans, not until it’s their last option.
The great thing about getting short term loans from banks is that your personal details are secured and you have the confidence that you won’t be defrauded.
6. Private Businesses
Ghana has a very good business environment and a lot of already established businesses are willing to support upcoming businesses tp grow.
They do this by making available short term loans to these individuals and small scale businesses.
This method of giving out loans is done out of the lender’s own discretion and attaches what ever penalty he/she chooses in case the borrower doesn’t meet up with his/her own end of the agreement.
A lot of people don’t go for this method to get loans because they see it as risky and not secure.
The borrower can approach a fellow business partner or any business around and plead for a certain amount of money as a loan, then the lender would decide to lend or not.
If the lender agrees, he/she would then state the conditions for granting such loans either verbally or in writing.
The borrower would then agree by signing the agreement. Like every other short term loan, it is for a short period of time with a certain amount of interest added to it.
That’s all on how to get short term loans in Ghana. I hope this article on how to get short term loans in Ghana helps.