Most of us have a strong desire to achieve our goal by purchasing that product, even if the price is right or the money is not enough. However, meeting all your financial needs, such as buying your desired product, can be achieved by simply obtaining a temporary loan. As its name suggests, short-term loans will be repaid in the short term.
What is a short-term loan?
A short-term loan is an unsecured loan where individuals and businesses can borrow from multiple commercial banks or financial institutions for up to 12 months. They are usually used to meet the short-term financial needs of the borrower when interest rates are generally higher compared to long-term loans.
Short-term loans range from Rs 5,000 and up to Rs 1,00,000. Several lenders offer interest rates ranging from 12% to 22%. Short-term loans can be repaid for a maximum of 12 months and can be taken out for at least 15 days. Generally, people find these types of loans with little interest in the interest rate.
Do not confuse Short Term Loans with Payday Loan, as Payday Loan is very similar to short-term loans but only works in the US and UK. In India, the only word used is availed is short-term loans. Nowadays, with the emergence of other software-based lending companies such as CASHe, registered as Non-Banking Financial Corporations (NBFCs) that use short-term personal loans it has become easier.
Let's discuss some of the features of Short-Term Loans:
Short Time
Suitable for Individuals and Businesses
Simplified documentation Process
Immediate Acceptance and disbursement
Being Unsecured Loans - No Security Required
Poor Credit Points may be accepted
It is easier to apply and get the application accepted online
No Guarantee Required - It varies from creditor to lender
Whether your goal is car maintenance, home repairs, unexpected payments, or purchasing products, etc., Taking out a temporary loan is a viable option. However, the interest rates charged by the lender on these loans are higher than in the case of personal loans.
Personal Loan Eligibility Terms:
The only way to apply for a short-term loan or match the Personal loan eligibility criteria is as follows:
Age between 21-60 years
Either self-employed or salaried
Your business must have a minimum of three years of existence
Tax return filing from last year, if you are self-employed
What Are the Main Benefits?
a) Processing the Application Immediately
If it is a maximum of one year, the loan amount will be much less than the value of the personal loan. Therefore, the application process is not long and very fast. After applying for a temporary loan, within 24 hours you will know the status of your application, whether it has been approved or rejected. To know how to apply for Indian Bank personal loan you can check their website.
b) Immediate Access to Credit
Given the above, with short-term credit, the application and disbursement process takes much faster than its long-term partner. Money is released quickly, so you can use the money to pay for emergency expenses, either to pay your suppliers or employees.
c) Fewer Limitations
The approval period is not limited to immediate, but with short-term loans, the documents you need to submit can be much smaller compared to long-term personal loans. This is because you do not borrow large amounts of money equal to the minimum risk of the lender.
d) Less Paperwork involved
Short-term loans require less documentation regarding the loan application, as the amount of loan requested is not large, and the repayment period is payable and within a year. Easy and quick processing is an added benefit of getting this type of loan.
Conclusion:
In some cases, lenders may overlook your credit history or credit score. Also, you should check the relevant details before applying, such as high-interest rates, pre-closing costs, if any, and processing costs.
Comentarios