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Sagot :
The lender most likely offers the best options on a short-term loan is a bank or credit union.
A short-term loan is a credit facility given to people or organisations to cover a cash shortage. Credit cards, bank overdrafts, trade credit, payday loans, etc. are some examples.
Depending on the form of debt, the loan tenure varies. While some loans have a term of 1-2 years, many have maturities of 6–12 months.
The interest rates, or annual percentage rates, are frequently set at high levels. Lenders try to make up for the lack of adequate earnings caused by short tenure by charging higher interest rates.
A short-term loan is a credit facility given to people or organisations to cover a cash shortage. Credit cards, bank overdrafts, trade credit, payday loans, etc. are some examples.
Depending on the form of debt, the loan tenure varies. While some loans have a term of 1-2 years, many have maturities of 6–12 months.
The interest rates, or annual percentage rates, are frequently set at high levels. Lenders try to make up for the lack of adequate earnings caused by short tenure by charging higher interest rates.
Since there is no tangible asset that may be sold to recoup the debt in the event of a default, most short-term loans are unsecured. As a result, applicants for loans with strong credit histories are prioritised.
Applicants with low credit scores frequently face considerable difficulty getting a short-term loan. They frequently receive loans with extremely high interest rates.
What is bank?
A bank is a type of financial entity that lends money while both taking deposits from the general public and generating demand deposits. The bank may engage in lending activities directly or indirectly through the capital markets.
What is credit union?
Since a credit union is truly organised as a cooperative, it is owned by its members. Members of credit unions are often those who have something in common, such as a profession, a place of residence, a religious affiliation, or membership in another group. Additionally, since they are nonprofits, credit unions are typically excluded from paying federal taxes. Some of them even get financial aid from the associations to which they are linked. As a result, credit unions are free from the pressure of turning a profit for shareholders.
The credit union's goal is to offer its members the most affordable terms for their financial goods. In comparison to bank customers, members typically receive lower lending rates, pay fewer (and lower) fees, and earn better APYs on savings products.
Supporting answer
Hence option D is correct answer
To learn more about bank or credit union here https://brainly.com/question/12730078
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