posted on 2020-06-06 10:38:58 by Admin
Need emergency cash? - A short term personal loan is a quick way to get funds for urgent need. The short term loans are offered for a shorter tenure with flexible EMI options. Nowadays, you can get a personal loan for the short term quickly within a few hours. Such credits are best for medical emergencies, higher education, wedding expenses, and more.
So, if you are applying for the short term loan, then check out its eligibility, documents, credit score, EMI, and application process.
Read on!
Personal loans are one of the popular financial product to get the cash immediately with minimal documentation. There is various type of personal loans depending upon the loan amount, interest rate, and repayment tenure. Example - Flexi personal loan, short & long term loan, payday loans, etc.
The short term loans can be available up to 25 Lakhs depending upon the applicant source of income. The maximum tenure of such a loan is generally 12 months or 1 year.
Quick and Instant Approval
The short term personal loan is easy to get and the approval process is quick with the online process. Thus, it will serve the purpose of getting cash in case of a crisis.
Flexible Tenure
Some financial institution allows you to pay between 12 to 60 months. So, there is flexibility in terms of repayment of the loan. You can always negotiate the terms with the lender. A good credit score will help you to relax the terms and conditions.
Collateral Free Loan
You do not need to put up collateral to get a personal loan. Thus, personal loans are unsecured and you will lose any assets.
Online Application
You can apply and track loan details from the online account. With a login id and password, you can keep checking the updates in your account.
Low EMI
With Flexi personal loan option, you can save on the interest payment by 45%. This is a lot of saving as compared to the fixed interest rate EMIs
Faster Disbursal
Once the loan is approved, you can expect money in your account within 24 hours.
If you are planning to apply for a short term personal loan, then you must check if you are eligible or not. This is the general criteria that different lending institution follow. However, the exact specifications will change with banks or NBFCs. Aa common criteria, you must be a
Indian citizen.
Employment Type
You must be a salaried employee or self-employed to apply for a personal loan. You must have experience of atleast 1 year in the private or public sector firm.
Age Criteria
The general age bracket is 21 - 60. It may change as per the bank/NBFC policies and criteria.
Monthly Income
For the salaried employee minimum monthly income is Rs 12000/- and Rs 15000/- for self-employee. The minimum income may change as per the lending institution criteria.
For the quick approval and disbursal, keep the important documents for personal loan ready.
The interest rate starts from 12.99%. It may go up to 36% depending upon the bank/NBFC offering the short term personal loan.
The processing fee may vary from 2 to 5% depending upon the loan amount. Before the final agreement to the loan, you must check all the charges apart from the interest rate to reduce the EMIs.
Check with your lender, if the loan is offered on a fixed or floating interest rate. In the fixed-rate, you will have to pay fixed EMI whereas in floating, the variable or adjustable interest is applicable as per the internal benchmark of the institution.
To avoid added financial burden, always use an online EMI calculator. Compare the interest rate of different banks and check the monthly EMI you have to pay. Apply for the loan only if you can pay from regular source incomes after deducing monthly necessary expenditure.
Methods of Interest Rate Calculation
Many times loans request get rejected due to multiple reasons. So, to avoid that situation, you can work on these parameters for faster loan approval.
Credit Score
Having a high credit score will help you to get the loan easily. It is a 3 digit number that represents your past credit history, EMI payments, etc. It helps the lenders to evaluate your repayment capacity. In case of a low credit score, you can always improve the CIBIL score to 750.
|
Range |
Grade |
|
More than 750 |
Excellent |
|
700-749 |
Good |
|
650-699 |
Fair |
|
551-649 |
Poor |
|
300-550 |
Bad |
|
0 / -1 |
No Credit History |
Compare Loan Offers
Whenever you apply for a loan, always compare the loan policies of different lending institutions. Most importantly check the interest rate and the other fees. Also, do not directly approach the bank, as it will be considered hard inquiries which will decrease your credit score. Thus use online interest rate compare features and apply at 2-3 institutions only.
You can easily apply for short term personal loans online. You can either visit the lending institute website or download the app. Keep in touch with your lender for any help. The steps you will need to follow are as follows.
Step 1:Once you have accessed the form, fill your basic details like phone number, PAN, Aadhaar, etc.
Step 2: Then fill the loan amount you want to apply for. Fill the amount that you can borrow as per your monthly income.
Step 3:Upload all the documents in the proper format to get instant approval.
Step 4: Once all the documents are verified, your loan will disburse within 24 hours.
Read: Personal v/s Line of Credit
The short term personal is best to meet the emergency requirements. You can easily avail them with fewer documents and easy disbursal process.
You can apply for the loan online for better offers. Always compare the interest rate of different banks and EMI. With the advantage of a shorter period, you can pay off the early and reduce the loan burden.
To apply for personal loans, home loans, business loans, credit cards, visit Loanadda.com. Best assistance and guidance is just one call away.
Download Now