Finbros School of Credit

What Is a Debt Consolidation Loan and How Does It Work?

A debt consolidation loan is a new loan used to repay two or more existing debts, such as credit card balances, personal loans or eligible consumer loans. Once the existing debts are settled, the borrower generally makes one scheduled repayment to the new lender instead of managing several separate EMIs or due dates.

What Is a Short-Term Loan and How Does It Work?

A short-term loan is credit that must be repaid over a relatively brief period. The exact boundary depends on the product: a Finbros short-term personal-loan offer may use a few months to a year, while other lenders describe short-term credit more broadly. The important feature is the repayment horizon, not a universal number.

What Is an Overdraft Loan and How Does It Work?

An overdraft loan is a credit facility that lets an eligible borrower use money beyond the available balance in a linked account, up to a sanctioned limit. The borrower normally draws only the amount needed, and interest is generally calculated on the outstanding amount for the period it remains utilised, subject to the facility’s terms.