The requirement of cash can arise at any point in time, it can be an unforeseen situation or to fulfill your personal needs. A short-term personal loan is provided for a shorter tenure, which is less than a year. If you are not able to obtain credit from a bank for a longer duration, then these loans are useful in this situation as these loans are generally one time loans.
Types of short term loans available
Below are a few short term loans available:-
1. Payday loans:-
Instant approval and one-day money transfer.
No physical documentation.
Zero proceeding charges.
10 Minute loan.
3 Month monthly installments – For salaried (more than ₹50,000/- Month).
2. Short term loans:-
Complete online techniques.
Easier and fewer Documentation.
Interest rates lie between 1%-3% pm.
The duration is as short as a few days or months.
These loans are approved fast.
3.Line of credit:-
Get instant approval for a credit line online.
One-time approval with long loan convenience.
Apply currently and withdraw later throughout emergencies.
Withdraw as very few as 3,000 up to your complete approved limit.
Pay interest only on the quantity used.
Eligibility criteria for these loans
Below is mentioned the eligibility criteria that a borrower needs to qualify to get a short-term loan sanctioned:
The borrower must be a citizen of India with an age limit of 18 years or above.
You must fall under 2 categories, either you can be a salaried employee or you can be a self-employed individual. In both cases, the individual should have a savings bank account.
If the borrower is a salaried employee then he/she should have a work experience of at least 2 years and for self-employed, the business should be 1-year old.
Documents necessary for short-term loans
The following documents are necessary to get a short-term loan sanctioned:
Proof of identity and age (Driving license, Aadhaar, Voter ID, PAN card, passport).
Proof of salary and employment (salary slips of the recent 3 months, form 16, experience letter).
You also have to submit the residence proof as well as the utility bill (electricity bill).
Passport-size photo.
Features of short-term loans
Below are a few inevitable features of the short-term loans:
The monthly installment of these loans is set on basis of the repayment capacity of the borrower. You can check your monthly installments online by using a personal loan EMI calculator.
Short-term loans usually have a very fast disbursal.
These loans can be customized easily as the borrower can opt for a loan amount of their choice for a duration as per the requirements.
Short-term loans have opted when an individual needs an instant loan or they want to repay all the debt at one time. You can have a look at the United Bank Of India Personal Loan.
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